Twitter's Stock Jumps as Deal With Elon Musk Draws Near

Multiple outlets say it could be announced on Monday
By John Johnson,  Newser Staff
Posted Apr 25, 2022 11:54 AM CDT
Twitter's Stock Jumps as Deal With Elon Musk Draws Near
Tesla, SpaceX and maybe Twitter Chief Executive Officer Elon Musk.   (AP Photo/Susan Walsh, File)

(Newser) – The story line around Elon Musk and Twitter continues to change quickly. News emerged overnight Sunday that talks between Musk and the social media company had gotten serious, after his initial proposal appeared to be rebuffed. Now the consensus in business coverage is that a deal is so close it could be announced at some point Monday—outlets including Reuters, Bloomberg, the Wall Street Journal, and the New York Times were saying so as of early afternoon. Given that Musk is involved, the usual caveats are in play: "There are no guarantees they will reach (a deal)," declares the Journal. The situation is "fluid and fast-moving," is how the Times puts it.

What's more, one of the points currently under negotiation is how much Musk would pay if they agree to a deal that eventually falls through. Investors, meanwhile, seem on board with the dramatic new turn of events. Twitter's stock was up about 4% on Monday afternoon to $51.23 a share. That is below Musk's bid of $54.20 a share, which equates to roughly $43 billion in cash and would be "one of the biggest-ever leveraged buyouts of a listed company," per Bloomberg. The likelihood of a deal rose when Musk met privately with some larger Twitter shareholders over the weekend to explain how he had lined up $46.5 billion financing via bank loans and his own equity, reports the Washington Post. (Read more Elon Musk stories.)

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