Elon Musk May Reach a Deal to Acquire Twitter ‘Within Hours,’ Report Says

On Sunday, the Wall Street Journal claimed that the two sides had met to negotiate, and Twitter would take this proposal more seriously after Elon Musk secured the necessary financing.

 

According to Bloomberg, Twitter is reportedly “in the final stretch” of talks with Elon Musk — possibly as early as today to reach an agreement on an takeover.

 

A flurry of reports had suggested the world’s richest man had gained newfound momentum in his plans to buy the social network over the weekend.

 

On Sunday, the Wall Street Journal claimed that both sides had met for talks about the proposals, with Twitter understood to be taking his offer more seriously after Musk secured the necessary financing.

 

Musk has also been pressing the flesh with Twitter shareholders in recent days — and all of this came as the tech giant faced growing pressure to begin negotiations with Tesla’s CEO.

 

While some investors have conceded that Musk’s so-called “best and final offer” of $54.20 a share is too low, some hedge funds believe this is a realistic valuation amid fears that economic uncertainty and red-hot inflation could batter tech stocks in the months to come.

 

Twitter’s share price had closed Friday’s session on Wall Street at $48.93 — a 10% discount to the price Musk has been proposing. This is generally perceived as a sign that investors are not confident of a deal being successful.

 

But in pre-market trading on Monday, TWTR had leapt by 4.8% — taking it to $51.30 at the time of writing.

 

Deal Is Pending

Each report over the weekend stressed that the situation is fluid — meaning talks could be protracted or suddenly collapse.

 

Twitter may also have some other tricks up its sleeve. The company could seek bids from rivals, or attempt to sweeten Musk’s offer.

 

The social network is due to release quarterly results on Thursday, figures that could give the company an upper hand in its quest to secure a higher valuation.

 

Musk initially made an offer for Twitter earlier this month after complaining that the social network was failing to protect free speech. He suggested the company needs to be privatized to make improvements. His suggested features include an edit button and tweets that exceed the current 280-character limit, as well as cracking down on bots that contaminate well-known crypto accounts with spam messages.

 

Crypto enthusiasts have even been wondering whether Musk would allow Dogecoin to be used as a payment potion on the micro-blogging site.