Twitter Inc. TWTR shares jumped Tuesday afternoon following reports that Tesla Inc. TSLA CEO Elon Musk plans to close the Twitter deal this week.
What Happened: According to a Bloomberg report, Musk on Monday “pledged to close” the acquisition of Twitter by Friday in a video call with debt bankers helping to fund the deal.
Friday is the deadline Delaware Court of Chancery Judge Kathaleen McCormick gave Musk and Twitter to close the buyout deal after issuing a stay in the social media platform’s lawsuit against the Tesla CEO.
People familiar with the matter reportedly said the banks are set to provide $13 billion of debt financing and have finished putting together the final agreement. The report indicates that the banks are in the process of signing the documentation, which is usually one of the last steps in the process.
From Last Week: Elon Musk Could Sell $5B Tesla Shares To Fund Twitter Deal Next Week — But Analyst Predicts Rally Once ‘Overhang Lifts’
The Twitter takeover deal previously stalled after Musk claimed the number of bots or spam accounts on Twitter was much higher than the company stated. However, at the beginning of the month, Musk made a proposal to buy Twitter at the original offer price of $54.20 per share. It appears Musk is close to completing the financing for the acquisition.
TWTR Price Action: Twitter has a 52-week high of $54.57 and a 52-week low of $31.30.
The stock was up 2.64% at $52.88 Tuesday afternoon, according to Benzinga Pro.
Photo: Steve Jurvetson from Flickr.