September 27, 2022

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Musk would pay $54.20 a share, sources say, as Twitter buyout edges closer

Twitter shares rose 5% premarket on 25 April, after Reuters said the social media site is set to accept Tesla chief executive Elon Musk’s “best and final” offer to buy the company.

Musk said last week he had lined up $46.5bn in financing to back his bid for the company announced 14 April, when he offered $54.20 a share.

Musk has criticised the company for failing to live up to its potential as a platform for free speech. But Musk himself has used Twitter to start a spat with the Securities and Exchange Commission, with a famous tweet in which he claimed he had “funding secured” to take Tesla private.

READ Elon Musk says he has lined up $46bn to fund Twitter deal

Twitter enacted a poison pill that would make it expensive to take full control of the company. Reuters cited unnamed people who are familiar with the matter and said an announcement could come as early as today.

Twitter shares are up 13% in the year to date, while the S&P 500 has fallen 10%.

READ Elon Musk confirms Twitter stake isn’t passive anymore

The continued progression of talks follows the Wall Street Journal reports that the two sides worked through the night to hash out a deal.

This article was published by MarketWatch, a fellow Dow Jones Group title