surged Monday after the social media company met with Elon Musk to discuss the
chief executive’s $ 43 billion takeover bid.
The Wall Street Journal reported Twitter (ticker: TWTR) and Musk met Sunday to discuss the billionaire’s proposal and were making progress. Barron’s was told by a person familiar with the matter that the deal could be announced Monday. The Journal noted there were no guarantees that a deal will be reached.
Twitter, which was expected to rebuff Musk’s offer (it went so far as to adopt a so-called poison pill to thwart Musk’s proposal), grew more receptive to the bid after Musk revealed last week that he has the funding to take Twitter private.
Musk, however, told Twitter Chairman Bret Taylor in recent days that he will not budge on price, some of the people familiar with the matter told the Journal. Musk has said his offer made earlier this month of $ 54.20 a share offer is his “best and final” offer.
Twitter reports earnings on Thursday.
Analysts surveyed by FactSet expect Twitter to post first-quarter profit of 5 cents a share on revenue of $ 1.23 billion. A year earlier, Twitter earned 16 cents a share on revenue of $ 1.04 billion.
Wedbush analyst Dan Ives said Twitter’s earnings “likely will not be rainbows and smiles thus putting further pressure on the company around this game of high stakes poker with the Musk bid looming.”
Twitter was up 4.2% to $ 50.98. Coming into Monday trading, the stock has risen more than 13% this year, including a gain of nearly 7% since Musk launched his bid.
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