Update (0750ET): Here comes Reuters with the latest on the Musk-Twitter deal. Their three-sentence scooplet includes two notable details.
The first is that Musk and Twitter are indeed negotiating on the basis that his offer of $54.20/share (which would value the company at $43 billion).
The second is that the deal would preclude a “go-shop” provision (something we discussed below and for the first time earlier this month) allowing Twitter to solicit rival bids – although the company would still be allowed to take a rival offer if it pays the Musk group a break-up fee (agreements like these are pretty standard fare).
- TWITTER SAID ON TRACK TO REACH DEAL WITH MUSK AS SOON AS MONDAY
Amid the headlong rush to report a final deal, it’s worth noting that Twitter shares have bucked the recent market selloff (largely thanks to rumors of Musk’s interest), the timing of the board’s apparent engagement with Elon is certainly interesting, considering the seemingly quickening pace of the recent broader market selloff.
On that note, Twitter shares have surged more than 6% during the premarket session on the news.
However, Tesla shares (Musk has pledged some of his as collateral in the deal) have tumbled.
- TESLA SHARES DROP 4% TO PREMARKET SESSION LOW