Reuters has reported that Twitter has accepted Elon Musk’s deal to buy the company outright for around $43 billion in cash.

The move comes on the back of reports that the Twitter board met with Elon Musk to discuss his deal to take over the social media platform.

Anonymous sources cited by Reuters and the New York Times said that Twitter’s 11-member board were considering taking the deal. This would see Musk buyout the other shareholders, paying $54.20 per share in cash, for a total of $43 billion.

The company has previously taken measures to discourage shareholders from taking the deal. However, signs pointed that Twitter was re-examining the offer, based on shareholder support and Musk receiving financing for the deal. The New York Times reported that Twitter and Musk were nearing a deal.

The Story So Far

Musk’s plan to buy Twitter has had a short, but turbulent history. He began buying shares in the company in January this year before officially disclosing his stake on April 4th. For a short time, he was the biggest shareholder in the company.

When he revealed his 9.2% stake, it was widely assumed that he would take a place on the company’s board. However, on April 11th, Twitter revealed that Musk would not be joining the board, though the company would “remain open to his input”.

The move led to speculation as to why he wouldn’t be taking up the position – whether background checks had raised issues, or the free speech advocate would be able to act in the company’s best interests.

However, some pundits noted that joining the board would limit the maximum share Musk could hold in the company to 14.9%.

Speculation that his move not to join the board was a sign of a planned takeover materialised on April 14th.

In reaction, investment advisor Vanguard Group increased its stake to 10.3%, taking over from Musk as the company’s biggest shareholder.

The move led to pushback from Twitter and its existing shareholders. The company attempted a ‘poison pill’ strategy to stop the takeover.

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This move, also called a shareholder rights plan, was approved by the company and allows existing shareholders, except the party trying to acquire the company, to purchase discounted stock should some acquire a greater than 15% stake in the company.

In effect, this dilutes the value of the shares and drives up the price of the company, making it more difficult and expensive for one party to takeover the company.

However, according to Reuters, some shareholders encouraged Twitter to seek a deal with Musk, saying it is an opportunity the company should not let slip away.

Musk’s bid is currently set to be financed by US lender Morgan Stanley, along with other financial organisations. The world’s richest man has reportedly secured $46.5bn for the deal.

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