Twitter’s board is negotiating with Elon Musk over his offer to buy the social media platform.
A deal could be announced as early as Monday, according to reports.
Twitter and Mr. Musk negotiated into the early hours of Monday morning, the New York Time reported, less than two weeks after the billionaire first revealed a massive turnout.
Mr Musk said last week he had raised $46.5bn (£36.2bn) in funding to buy Twitter, pressuring the company’s board to negotiate an agreement.
Twitter had adopted an anti-takeover measure known as the poison pill that could make a takeover attempt prohibitively expensive. The company has issued new shares made available to current shareholders, except for Mr. Musk, which are worth double.
However, the board decided to negotiate after Mr Musk updated his proposal to show he had secured funding, according to the the wall street journal.
A competing bidder currently seems unlikely, due to concerns over the platform’s enormous content moderation task – something Mr Musk has pledged to do less of.
“Twitter’s board couldn’t find a white knight and with Mr. Musk’s detailed funding, the clock has essentially struck midnight for the board, which is why negotiations have begun for make a deal,” said Dan Ives, a Twitter follower for Wedbush Securities.
What is Elon Musk’s net worth?
Musk is currently the richest person in the world. As of April 14 Forbes says he is worth $269.7bn (£212bn).
He owns 21% of Tesla but has pledged more than half of his stake as collateral for loans. He largely contributed to its financing in its early days and has been its CEO since 2008.
Tesla, whose primary focus is electric vehicles, has seen its value skyrocket as people invest more in renewables. It is now worth more than Ford, Toyota, Volkswagen, Hyundai and GM combined.
His rocket company SpaceX is valued at $74 billion after a funding round in February 2021 and securing a commercial contract with Nasa.
Musk was CEO of Paypal in its early years and went on to found many other companies, including Neuralink, which focuses on connecting the human brain to computers, and The Boring Company, which builds tunnels for transportation systems intra-urban.
The rise of the 50s in the list of the richest people in the world has been meteoric. He was the 35th richest person in the world at the start of 2020, before overtaking Bill Gates and Jeff Bezos, reaching the top of the tree in January 2021.
Investopedia says, “Thanks to the surge in Tesla shares in 2021 and the private deals that boosted SpaceX’s reported valuation, Musk’s lead in the global wealth rankings has continued to grow. His net worth peaked at $340 billion in November 2021.”
Musk grew up in South Africa, before moving to Canada when he was 17. He transferred to the University of Pennsylvania as a student and has since moved to the United States.
How would buying Twitter affect Elon Musk’s finances?
On April 14, Musk announced an offer to buy the social media platform for $54.20 (£42.20) per share, or around $43bn (£33.5bn), but did not say at the time how it would finance the acquisition.
Last week, he said in filings with US securities regulators that he would pay $21 billion for the company himself.
He said the rest of the money would come from Morgan Stanley and other banks, with some secured by his huge stake in electric car maker Tesla.