Source: Twitter could reach a deal with Elon Musk for a takeover at $54.20 per share as soon as today

Twitter is in the final stretch of negotiations about a sale to Elon Musk, a person with knowledge of knowledge of the matter said, Bloomberg News reports.

Bloomberg 2022-04-25

Context & Ripple Effects

Musk's non-binding $54.20-per-share proposal had put a defined cash price on taking Twitter private. The reported end-stage talks signal that Twitter and Musk were converging on those terms rather than leaving the offer as a proposal.

The next-day agreement to sell Twitter to a Musk-owned entity confirms the negotiations produced a signed transaction, while later coverage shows that closing the deal became a separate and contested phase.

First-order effects

Twitter and Musk move from an unsolicited proposal toward a binding $54.20-per-share cash transaction, giving Twitter shareholders a concrete deal for consideration.
A signed agreement would shift the immediate process to shareholder and regulatory approvals, as the subsequent acquisition announcement specified.

Second-order effects

Twitter's board gains a contractual basis to press for closing: its later statement that it intended to enforce the merger agreement shows how the negotiation turned into an obligation rather than an open-ended bid.
Musk's ability to alter or abandon the transaction becomes constrained by the agreed merger terms, setting up the later deadline-driven completion talks.

Third-order effects

The sequence illustrates how a public take-private bid can rapidly change from price negotiation to contract enforcement, with the decisive leverage shifting from offer terms to the merger agreement.
For public-company boards, the pattern raises the importance of closing protections once a buyer and price are accepted, because approval and completion can remain distinct stages.

The trend: High-profile take-private bids are increasingly defined not only by the initial premium but by the enforceability of the agreement after a board accepts it.

Discussion

@henrymance Henry Mance on x
I, for one, welcome our new free speech overlord https://twitter.com/...
@nicoleperlroth Nicole Perlr🌻th on x
I'm old enough to remember when Elon Musk ordered his private investigators to make a Tesla employee's life a living hell—including having the employee SWATTED—for tipping off a reporter to waste at a Tesla factory. The employee had to move his family to Hungary for safety. https…
@wongmjane Jane Manchun Wong on x
This is like a season finale of Twitter
@chillmage @chillmage on x
the “free speech” platform that is important is just the internet. which is why net neutrality and connectivity have been so important all along. if these folks truly cared about free speech they would do everything in their power to make the internet faster, cheaper, universal
@reuters @reuters on x
EXCLUSIVE: Twitter is nearing a deal to sell itself to Elon Musk for $54.20 per share in cash, the price that he originally offered to the social media company and called his ‘best and final,’ people familiar with the matter say https://www.reuters.com/... $TWTR https://twitter.c…
@chillmage @chillmage on x
the mistake elon makes in saying twitter is “extremely important to the future of civilization” is that it's probably not. none of these apps are permanent or essential. of course they would love for everyone to think they are. which has been facebook's entire pitch on regulation
@deitaone @deitaone on x
EXCLUSIVE-TWITTER INC POISED TO ACCEPT ELON MUSK'S $54.20 PER SHARE OFFER AS THE PRICE AT WHICH THE COMPANY IS SOLD-SOURCES $TWTR
@maxberger Max Berger on x
Giving a billionaire more control of the public conversation is not going to make anyone more free.
@mims @mims on x
my hottest take is that everyone who is excited for elon musk to buy twitter will be disappointed, everyone who is freaked out will stick around after all, the future will be endless uneasy compromises & disappointments about the platform's decisions, same as ever
@emilybell Emily Bell on x
Taking a moment to think about how utterly crazy it is that in 2022 a company with a significant dataset of private and public communications, that has municipalities, companies and governments on the platform, can switch ownership with pretty much zero scrutiny
@nixcraft @nixcraft on x
Twitter set to accept Musk's original $43 billion offer https://www.reuters.com/... Twitter went from we are not accepting a low bid to sale in less than a week. I can't believe it. How fast they moved from big NO to yes.
@pwnallthethings @pwnallthethings on x
No company should sit on private communications data at that sort of scale, even if they're generally trustworthy, because however trustworthy the directors and engineers are, or how Hack proof they make it, one day a billionaire spacecoin enthusiast can just buy out the company
@coopercooperco @coopercooperco on x
Damn. I can't believe Twitter might be run by a crypto obsessed, free speech tech dipshit.
@obrien Chris O'Brien on x
More and more I'm thinking: Fuck it. Let him have it. I think financial terms will crush him. He's going to saddle Twitter with debt, bet his Tesla stock that he can fix it, and magically conjure +$20B in equity? He's got a secret plan to make Twitter a cash machine? Go for it! h…
@kantrowitz Alex Kantrowitz on x
If the Twitter deal goes through, who's the CEO? Probably not the guy who sent the background check tweet.
@ivanthek @ivanthek on x
I assume if Twitter actually reaches an agreement with Musk, there would be a go-shop provision that will open their books to other potential acquirors. https://twitter.com/...
@daveweigel David Weigel on x
Imagine if Trump was able to tweet again, instead of relying on reporters to post his press releases as soon as they hit the inbox. This would change everything https://twitter.com/...
@shonaghosh Shona Ghosh on x
The point isn't really about Twitter's profitability, or probably shouldn't be. No tycoon buys a newspaper for profitability.
@austen Austen Allred on x
He did it. The madman. Elon Musk is buying the bird app. 🤯😂 https://twitter.com/...
@shonaghosh Shona Ghosh on x
Ok fine, if he actually does buy it, it'll be an incredibly smart move - for him. Even with moderation headaches, an undue number of journalists at top-tier publications are on Twitter and draw stories from it. That alone buys him huge influence.
@justinhendrix Justin Hendrix on x
A billionaire at the helm of a social media company willing to abet the interests of white supremacists based on some wafer-thin libertarian thinking isn't, unfortunately, a new situation.
@parismartineau @parismartineau on x
now's the moment where we separate the casuals from the true addicts
@adamkotsko Adam Kotsko on x
Unless Musk removes the ability to block, mute, or apply the “quality filter” for replies — all of which would hurt his own personal functionality on the site — I'm not sure how much our day to day experience will change?
@b_fung Brian Fung on x
Even the structure of Musk's financing is characteristically unusual, according to this Reuters analysis https://www.reuters.com/... https://twitter.com/...
@adamsinger Adam Singer on x
Twitter has had so much drama, leadership changes etc over years at this point I honestly don't care who runs it. Core product is too impt to world & they know enough not to break that (is why we're all still here). Just fix the spam/bots please and stop making the co the show
@noupside Renee DiResta on x
Elon still hasn't laid out any plan for how he will free speechify Twitter AFAICT, but it's inevitably going to have content moderation - as Parler and others who pandered to that market inevitably had to. Wonder how the fan base will react when that happens. https://twitter.com/…
@jjvincent James Vincent on x
i feel like if there's one thing musk has proved that he does extremely well, through means fair or foul, is make lots and lots of money, and i assume for all his free speech posturing he also thinks he can do this with twitter
@pwnallthethings @pwnallthethings on x
Apropos of nothing in particular, but Twitter's failure to encrypt DMs and make them disappearing by default makes billionaire activist spacecoin bros who like attacking journos, rivals, and politicos buying the platform a lot more dangerous than it otherwise would be.
@alexhern Alex Hern on x
“I can't stand working for a part-time CEO who focuses all his attention on his second job, I wish that would change” the twitter employee said, holding the withered monkey's paw
@maxberger Max Berger on x
I will believe @elonmusk is a champion of free speech when he pledges to let workers talk freely about organizing a union at one of his companies. https://twitter.com/...
@markdistef Mark Di Stefano on x
Guy who got 1.1m likes for fat-shaming Bill Gates on the weekend sure knows what tweets will bang https://www.theinformation.com/ ... https://twitter.com/...
@gossithedog Kevin Beaumont on x
Can't wait for Donald Trump and related shitlords to be unbanned shortly to try to overthrow democracy again! https://twitter.com/...
@mollyjongfast Molly Jong-Fast on x
Content moderation is a terrible problem for people spent years and years worrying about it. I don't think Elon realizes the headache he's in for.
@danprimack Dan Primack on x
The termination fee may be huge on this deal, if it's signed.
@jyarow Jay Yarow on x
More bad news for Democrats. Gotta think Musk brings Trump back to Twitter. https://www.cnbc.com/...
@mattyglesias Matthew Yglesias on x
I sincerely don't understand how so many people have developed strong negative opinions about this — is the Twitter status quo so great? https://twitter.com/...
@s_m_i Stacy-Marie Ishmael on x
if this twitter deal closes do we think a16z folks will block or unblock more journalists in celebration
@jimwaterson Jim Waterson on x
I like how no one is actually pretending they're going to boycott an Elon-owned Twitter, just accepting that they'll hate themselves even more for being addicted to it.
@sherman4949 Alex Sherman on x
Wonder if shareholder pressure convinced the Twitter board not to fight. Rejecting $54.20 when shares were trading above $70 less than a year ago wouldn't have been all that difficult. https://twitter.com/...
@benedictevans Benedict Evans on x
It's been the Craigslist of Web 2.0, coasting on network effects, building nothing much, and getting unbundled piece by piece.
@parmy Parmy Olson on x
So it looks like this may actually happen... today: https://www.bloomberg.com/... Are you ready for a world where Elon Musk owns Twitter?
@benedictevans Benedict Evans on x
(That said, he will get a horrible shock when he discovers what content moderation actually looks like.)
@ninaturner Nina Turner on x
Is anyone else concerned that the richest people have too much influence over the media? https://twitter.com/...
@hblodget Henry Blodget on x
Smart. Take the generous cash offer and make Twitter someone else's problem. https://twitter.com/...
@cstross Charlie Stross on x
Been nice knowing you all. https://twitter.com/...
@benedictevans Benedict Evans on x
Elon has not, so far, shown a very clear or convincing vision for what exactly he would do better, but that might not be the point - having someone who can actually run the company, make decisions and require excellence would be a big change.
@youngvulgarian Marie Le Conte on x
simply do not want Elon Musk's greedy little paws on my website
@tristandross @tristandross on x
this is good. the average twitter user now has the potential to ruin elon musk by collectively posting so much cringe we collapse the share price https://twitter.com/...
@carnage4life @carnage4life on x
Wow. A heartwarming story of how the richest guy in the world is about to buy his favorite social network despite the efforts of a lethargic board of directors to stop him. Two thumbs up. https://www.bloomberg.com/...
@bongcapital @bongcapital on x
I guess we're not getting a deal at $69.420 after all.
@bongcapital @bongcapital on x
*TWITTER POISED TO ACCEPT MUSK'S $54.20 PER SHARE OFFER: REUTERS How bad are TWTR's 1Q22 earnings?
@thestalwart Joe Weisenthal on x
I'm confused about how Elon could close to buying Twitter. A bunch of people on here told me there was a corrupt conspiracy to keep it away from him.
@silvermanjacob Jacob Silverman on x
The bizarre thing is the many Elon stans who think a highly litigious obnoxious billionaire cares about free speech or their interests. Though that's been key to his rise.
@pkafka Peter Kafka on x
All over but the press release. https://twitter.com/...
@markdistef Mark Di Stefano on x
When do we delete all our DMs?
@martinsfp Martin Sfp Bryant on x
For all the bad you can say about Jeff Bezos, he keeps his hands off the Washington Post newsroom. A Twitter owner who preaches free speech but uses his wealth and power to give his shitposts an outsized influence on this platform would be disastrous.
@fintechfrank Frank Chaparro on x
$DOGE surging https://twitter.com/...
@martinsfp Martin Sfp Bryant on x
Twitter is far from perfect but it has a culture of learning from users who love to complain about the platform ("this hell site") they use all day. Compare that to how Musk has handled criticism in the past: https://www.cnbc.com/...
@loudmouthjulia Julia Alexander on x
Twitter's going to be sold at a value that includes a weed joke because this is how finance works now. https://twitter.com/...
@silvermanjacob Jacob Silverman on x
As bad as twitter is now, it'll be much worse if/when owned by Elon Musk.
@willystaley Willy on x
Whatever you think of Musk, he always set himself apart from the other Valley billionaires by investing in real-world tech that was not socially corrosive. And now he's sticking his hand into the fryer. https://twitter.com/...
@steventdennis Steven Dennis on x
RED headline on Bloomberg: Twitter on Track to Reach Deal With Musk as Soon as Monday https://www.bloomberg.com/...
@joepompliano Joe Pompliano on x
Twitter's board negotiated with Elon Musk into the early morning hours last night and is “nearing” a deal to sell the business as early as today, per @nytimes. Elon's bid is ~5% above Twitter's current share price.
@kantrowitz Alex Kantrowitz on x
Bloomberg reports Elon and Twitter could have a deal hammered out as early as today (!) https://www.bloomberg.com/... https://twitter.com/...
@samsheffer Sam Sheffer on x
😅😅😅😅 😅😅 https://twitter.com/...
@buttlerm Morten Witt Buttler on x
Twitter is in the final stretch of negotiations about a sale to Elon Musk. The social media company is working to hammer out terms of a transaction and could reach an agreement as soon as Monday, story on @TheTerminal by @LianaBaker
@nytimes @nytimes on x
Breaking News: Twitter's board is seriously considering Elon Musk's $46.5 billion bid to buy the company, people with knowledge of the situation said. The board met on Sunday morning to discuss Musk's offer, after he began lining up financing last week. https://www.nytimes.com/..…
@mollyjongfast Molly Jong-Fast on x
This is going to be such a headache for him and possibly for us https://www.nytimes.com/...
@carnage4life @carnage4life on x
If Twitter doesn't post blowout results on Thursday, it's really going to raise the question of what credible reason the board has to oppose the buyout offer? It's really unlikely they'll surprise with either user or revenue numbers so Elon has upper hand https://financialpost.co…
@laurenshirsch Lauren Hirsch on x
If there is a deal (!) one thing I'm very curious about is the size/nature of the break up fee. That would be one way to help manage Musk's “volatility” (We don't know that there will be a deal.) https://www.nytimes.com/...
@supremezerker @supremezerker on x
Funny headline, because they are legally obligated to! https://twitter.com/...
@avik Avik Roy on x
NYT reporting that the board of @Twitter is now “seriously considering” the @elonmusk offer because the financing has been specified. The real reason is because no other offers are on the table at this time. https://www.nytimes.com/...
@omarjsakr Omar Sakr on x
I suppose I should be thankful if this happens. I'll finally be able to leave https://twitter.com/...
@wongmjane Jane Manchun Wong on x
If you plan to leave Twitter in case the deal goes through, how committed will you be about it? https://twitter.com/...
@scottnover Scott Nover on x
If I am on Twitter's board I want shareholders to think that we are seriously considering Musk's offer even if there's no chance in hell we're gonna take it. https://twitter.com/...
@brianstelter Brian Stelter on x
A person familiar with the matter confirms that the Twitter board's discussions about Elon Musk's bid have turned serious. The company's line: “As previously announced, the Board is continuing to conduct a careful, comprehensive and deliberate review...” https://www.cnn.com/...
@taylorlorenz Taylor Lorenz on x
This could be enough to finally kill this app and set us all free https://twitter.com/...
@karoli @karoli on x
Twitter belongs in the commons. Not in one man's hands. You'll find me elsewhere if this comes to pass. https://twitter.com/...
@cheryllynneaton Cheryl Lynn Eaton on x
I can't wait to see what steps up to become the new Twitter if/when this happens. Because Twitter will be done. Following right in the footsteps of Vine. That said, I wouldn't pass up $46.5 billion dollars either. https://twitter.com/...
@srushtigangdev @srushtigangdev on x
well, it's been a terrible time twitter. see u all on tumblr https://twitter.com/...
@danprimack Dan Primack on x
One thing to remember is how good of a salesman @elonmusk is. He convinced world to take electric cars seriously. Convinced NASA to take commercial space travel seriously. Doesn't mean Twitter happens — still think he's alone on the equity — but don't underestimate the man.
@ashtonpittman Ashton Pittman on x
So I guess we really are gonna just destroy Twitter to appease the whims of some billionaire manchild. https://twitter.com/...
@blackamazon @blackamazon on x
He's outside his next discrimination case and wants to buy the major outlet where folks have reported his malfeasance .. after Barack Obamas misinfo btalj did rocks And pro union activity has been using Twitter But hey y'all made sure no one that Black people mattered https://twi…
@carnage4life @carnage4life on x
Looks like the quarterly numbers aren't looking impressive since the board is going to take Elon's bid seriously versus the prior out of hand dismissal. I expect Twitter to sell to someone by the end of the year. The pressure Elon has created is too much. https://www.wsj.com/...
@asemota Osaretin Victor Asemota on x
“Musk's loan against his Tesla stock to finance his Twitter bid is also expensive, potentially costing him about $1 billion annually in interest and amortization expenses, a regulatory filing shows.” Analysis: Musk tears up buyout playbook with $46.5B https://www.reuters.com/...
@gregroumeliotis Greg Roumeliotis on x
Great detail in this @readkrystalhu @asenjourno story on Musk's Twitter offer: * Banks balked at providing more debt. * Twitter's board wants to know where Musk's cash is coming from. * SoftBank, one of the world's biggest tech investors, is passing. https://www.reuters.com/... $…
@ngreenberg Neil Greenberg on x
A margin loan? Now it gets interesting. https://twitter.com/...
@annmlipton Ann Lipton on x
“Musk's advisers shared a slide presentation with potential lenders offering his ideas around how Twitter's business could be run, as well as its financial profile and how to boost revenue,...Banks felt good...also because Musk was willing to commit such a large amount of equity”…
@campuscodi Catalin Cimpanu on x
You don't say... https://twitter.com/...
@nistula Nistula Hebbar on x
“Sometimes Twitter feels like the hot potato of the Internet, or perhaps more like a zone of nuclear radiation. No one wants to take too much responsibility for it”- https://www.newyorker.com/...
@newyorker @newyorker on x
Twitter is a notoriously dysfunctional business. What does Elon Musk want with it? https://nyer.cm/1fskhG0
@mmarkovitz Michael Markovitz on x
Good piece: “(Twitter) feels overtly weaponized...#Musk wants a #Twitter on which anyone can say anything but that kind of melee is..part of the problem that's causing the service to stagnate. Ownership by 1 of its biggest manipulators wouldn't solve it” https://www.newyorker.com…
@narne_kumar06 @narne_kumar06 on x
Why would Elon Musk want to buy twitter ? “Twitter is still at the center of culture-war debates & remains a pulpit from which to t ®0ll public discourse Twitter's status as both a total mess and extremely influential makes it an eternal target: ” https://www.newyorker.com/...
@cengizyar Cengiz on x
“Twitter's option for a non-algorithmic feed and lax approach to content moderation, compared with other social networks, make it more immediately risky to use, like handling a loaded gun. It feels overtly weaponized.” ⁦@chaykak⁩ https://www.newyorker.com/...
@alanmillernlp Alan C. Miller on x
“The platform is awful—but its delivery of instantaneous feedback to every passing thought is also addictive. It's exploitative—but its ability to amplify any message is unavoidably powerful.” @chaykak https://www.newyorker.com/... via @NewYorker https://www.newyorker.com/... via…

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