The official profile of Elon Musk on the social network Twitter. The billionaire Elon Musk bought 9% of Twitter, an investment of USD 3 billion.
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The social media company had been expected to decline a deal and had adopted a so-called poison pill to fend off a potential hostile takeover. However, Twitter became more receptive to a bid after Musk revealed he secured $46.5 billion in financing.
The company’s board met Sunday to discuss Musk’s financing plan for his proposed bid, a source close to the situation told CNBC. The board negotiated with Musk into the early hours of Monday, according to The New York Times.
“I think they almost have to” take the deal, CNBC’s Jim Cramer said Monday on “Squawk on the Street.” Twitter is set to report first-quarter earnings Thursday, and some, including Cramer, expect the company to post disappointing results.
“Locking a deal up today or tomorrow may sound pretty appealing for someone who knows they are in possession of bad news,” Gordon Haskett said in a Monday note.
Musk, an avid Twitter user, has contended it needs to be “transformed” into a private company so it can become a forum for free speech. He’s also said that Twitter’s board members’ interests “are simply not aligned with shareholders” and that the board “owns almost no shares” of the company.