Shares of Twitter skyrocketed after the social media giant met with Elon Musk to discuss the billionaire’s $43 billion takeover bid. The Wall Street Journal said Twitter (ticker: TWTR) met Musk on Sunday to table a discussion about the Tesla chief executive’s proposal and were finally making progress despite some negative reactions on Twitter. According to sources with information on the deal could be finalized as early as Monday.
At the onset, it looked like Twitter might reject the bid, with the coming going as far as adopting a so-called ‘poison pill’ to fight Musk off. However, the company seems to be much more receptive to the bid after the billionaire revealed last week that he has the funding to take the company public.
According to Twitter chairman Bret Taylor, Musk was adamant about the price and considered it non-negotiable. Musk has announced that his $54.20 a share was his best and final offer. FactSet analysts expect Twitter to post a first-quarter profit of 5 cents on revenue of $1.2 billion. Last year, Twitter earned 16 cents a share on revenue of $1.04 billion.
Dan Ives, a Wedbush analyst, said Twitter’s earnings “likely will not be rainbows and smiles which will put further pressure on the company around this game of high stakes poker with the Musk bid looming.”
Twitter gained 3.9% to $50.83. So far, the stock has gained a further 13% this year, including an increase of 7% since Musk announced his bid.