Tesla boss Elon Musk appears to have won over the board of Twitter with his announcement that he had lined up $46.5bn or $54.20 a share in financing to take over the influential social media outfit.
Progress was made at talks between both sides on Sunday and a deal might materialise as soon as during the present week, although it was not guaranteed that would happen, the Wall Street Journal reported citing people familiar with the matter.
The swoon in the stock market was also cited as a factor.
Musk reportedly also met with several of Twitter’s shareholders on 22 April in an attempt to sway them, focusing on actively managed investment funds.
The technology magnate also cast the decision facing Twitter as a take it or leave it decision.
In the past, Musk has also held out the possibility of launching a tender offer for the outfit and thus going straight to shareholders.
However, Twitter had put in a place a so-called ‘poison pill’ in order to keep Musk from building up his stake.
The takeover target had also long since implemented staggered board terms, meaning that any potential suitor would take years to gain control of its board.
Musk’s bid would be structured as $21bn in equity and $25bn in debt.
As of 1110 GMT, shares of Twitter were adding 0.92% to $49.38 in pre-market trading, giving the company a market value of roughly $39.18bn.
