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Twitter stock jumps 4% after reports of the company's willingness to accept Elon Musk's offer

Elon musk
Musk met with some Twitter shareholders Friday to discuss the deal


Twitter's stock jumped more than 4% in early trading on Wall Street, following reports that the company was ready to accept Elon Musk's takeover offer.

Twitter is reconsidering the offer

Twitter Inc reported this morning that it is reconsidering Elon Musk's takeover offer and is more willing to negotiate days after the Tesla CEO announced that it had secured $46.5 billion in funding to complete the purchase, according to Forbes.

Musk met with some Twitter shareholders on Friday to discuss the deal, although he insisted he was not willing to negotiate his offer of $54.20 per share.

Some shareholders pressed Twitter's board of directors to negotiate with Musk, even though the billionaire explicitly stated in his offer letter that $54.20 a share was his "best and last offer," according to Reuters.

Twitter executives meet with Musk again Sunday, and Twitter is likely to discuss the offer by the time it releases first-quarter earnings Thursday, although the company may not give the clear answer Musk is asking for, according to the Wall Street Journal.

You can read also: Elon Musk Buy Twitter

$46.5 billion in financing

Musk announced on April 4 that he had bought a 9.2% stake in Twitter and made an unsolicited offer to buy the entire company for $54.20 per share on April 14, but it was not clear at the time how he would pay for the deal.

Musk has a net worth of $270 billion and is the richest person in the world according to Forbes estimates, however, much of his wealth consists of fixed assets such as his stake in Tesla. However, he disclosed in a filing Thursday with the Securities and Exchange Commission that he will fund the deal with more than $20 billion in loans from investment banks such as Morgan Stanley and $21 billion in equity financing.

"poison pill"

If the Twitter board remains skeptical of Musk's offer, he may try to circumvent his decision with a "tender offer", or an offer to buy shares directly from shareholders at a certain price, but would need broad shareholder support to make such an offer.

He would also need the board of directors to weed out Twitter's plan to oust Musk's "poison pill," making it difficult for him to buy  than 15% of the company, a policy Twitter instituted a day after Musk announced his offer. The plan will remain in effect until April 14, 2023.

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