Twitter weighs Musk’s $43-bn takeover bid

Twitter is close to finalising the deal with Elon Musk, who offered to buy the social media major for $54.20 per share in cash. A final call on the agreement will be taken after Twitter’s board meets to recommend the deal to shareholders.

While Twitter is considering Musk’s offer, there is a chance the deal could collapse at the last minute, a news agency report claimed, quoting internal sources.

Twitter could not secure a ‘go-shop’ provision as of yet under its agreement with the Tesla CEO, which would allow it to invite bids from other potential acquirers once the deal is signed, the report added.

The microblogging platform would still have the option to accept an offer from another party by paying Musk a break-up fee.

Neither Twitter nor Musk has commented on this development.

Earlier this month, Musk had written to Bret Taylor, chairman of the Twitter board, to make a “best and final offer” to buy 100% of the social media company for $54.20 per share or $43 billion in cash, a 38% premium over the day before Musk's investment was publicly announced.

The company should be private to go through the changes that need to be made, Musk wrote in the letter. "After the past several days of thinking this over, I have decided I want to acquire the company and take it private."

While Musk has been critical of censorship by Twitter, he believes in the company’s potential to be the platform for free speech around the globe.

"I believe free speech is a societal imperative for a functioning democracy. However, since making my investment I now realise the company will neither thrive nor serve this societal imperative in its current form," the world's richest person wrote in his letter.

Musk also cautioned that if the deal doesn't go through, he would need to reconsider his position as a shareholder. "If the deal doesn't work, given that I don't have confidence in management nor do I believe I can drive the necessary change in the public market, I would need to reconsider my position as a shareholder. This is not a threat, it's simply not a good investment without the changes that need to be made. And those changes won't happen without taking the company private," he said.

Twitter reportedly began considering Musk’s “hostile takeover” offer after the businessman secured a financing commitment of $46.5 billion last week for the acquisition deal.

Musk has committed to provide $33.5 billion of his own money to finance the deal. This includes $21 billion of equity and $12.5 billion of margin loans. Morgan Stanley and some other financial institutions have committed to provide $13 billion in debt financing to Musk and other related entities.