Twitter Board Begins Interested In Approving Elon Musk's IDR 622.2 Trillion Offer

JAKARTA – According to reliable sources, the Twitter Inc Board is ready to approve the sale of shares to Elon Musk for about 43 billion US dollars (Rp 622.2 trillion) in cash. This price is called by Tesla's CEO as the "best and last" offer for the social media company.

Twitter may announce a share sale deal for 54.20 per US dollar share on Monday, April 25 after its board meets to recommend the transaction to Twitter shareholders. The source, however, also added that there was still a chance the deal could collapse at the last minute.

Musk, the world's richest person according to Forbes, is negotiating to buy Twitter in a private capacity and Tesla, Inc., is not involved in the deal.

Twitter has so far been unable to secure a 'go-shop' provision under its agreement with Musk that would allow him to request another bid once the deal is signed. However, Twitter will be allowed to accept offers from other parties by paying Musk a “farewell fee.”

The source who requested anonymity said this decision was still confidential. Twitter and Musk did not immediately respond to requests for comment on this news. Twitter shares are now up 4.5% in pre-market trading in New York at 51.15 dollars.

Musk, a prolific Twitter user, says this media platform needs to be private to grow and become a genuine platform for free speech.

The 50-year-old entrepreneur, who is also CEO of rocket developer SpaceX, said he wanted to fight trolls on Twitter and proposed changes to the premium subscription service Twitter Blue, including cutting prices and banning ads.

The billionaire who is also a vocal supporter of the cryptocurrency, even suggested adding Dogecoin as an official payment option on Twitter.

"The company will not thrive or serve this social imperative in its current form," Musk said in his offer letter last week.

Before Musk revealed his stake on Twitter in April, the company's stock had fallen about 10% since Parag Agrawal took over from Twitter founder Jack Dorsey as CEO in late November.

The deal, if it happens, would come just four days after Musk unveiled a financing package to support the acquisition.

According to a Reuters report, this prompted Twitter's board to take its offer more seriously and many shareholders asked the company not to let this best opportunity pass you by.

The sale would represent Twitter's acknowledgment that Agrawal isn't making enough traction to make the company more profitable, even though its leadership is well on track to meet the ambitious financial targets the company set for 2023. Twitter's stock is actually trading at higher than its offering price. Musk as recently as November 2021.

Musk revealed his intention to buy Twitter on April 14 and make it a private company through a financing package consisting of equity and debt. Wall Street's biggest lenders, with the exception of Twitter advisors, have all committed to providing debt financing for Musk.

Musk's negotiating tactic, making one offer for Twitter to comply, resembles how another billionaire, Warren Buffett, negotiates acquisitions. Musk did not provide any financing details when he first revealed his bid for Twitter, which left the market skeptical about the prospects. This is precisely the side of his greatness, because it does not make Twitter shares go up like crazy.