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Twitter shares rise as company announces it approved Musk’s $44 billion acquisition bid – CNBC

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.

Rafael Henrique | Lightrocket | Getty Images

Twitter shares resumed trading on Monday as the company announced it had accepted Elon Musk’s bid to acquire the company. The stock rose 5.9% to $51.79.

Musk earlier this month offered to buy Twitter for $54.20 a share. Twitter said the board has agreed to the deal, valuing the company at about $44 billion.

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.

The Tesla and SpaceX CEO has been on a tear to acquire Twitter. He had built up more than 9% in stock and turned down an offer to join the board before putting in a bid for the company.

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.

WATCH: Twitter ‘on track’ to reach deal with Musk

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