Twitter is about to accept Elon Musk's offer of $54.20 per share in cash

Twitter may announce the deal later on Monday once its board has met to recommend the transaction to Twitter shareholders.

Twitter shares were up 4.5% in pre-market trading in New York on Monday at $51.15.

The company's decision to engage with Musk, taken earlier on Sunday, does not mean that it will accept his $54.20 per share bid, the sources added. It signifies, however, that Twitter is now exploring whether a sale of the company to Musk is possible on attractive terms.

According to sources, Twitter has yet to implement a go-shop option, which would allow the firm to consider alternative bids from possible acquirers once the deal is finalised, as part of its agreement with Elon Musk. "However, by paying Musk a break-up fee, Twitter would be permitted to accept an offer from another party," Reuters wrote, citing the individuals. Neither Twitter nor Musk have responded to inquiries about this.