The first is that Musk and Twitter are indeed negotiating on the basis that his offer of $54.20/share (which would value the company at $43 billion).

The second is that the deal would preclude a "go-shop" provision (something we discussed below and for the first time earlier this month) allowing Twitter to solicit rival bids - although the company would still be allowed to take a rival offer if it pays the Musk group a break-up fee (agreements like these are pretty standard fare). 

Update (0725ET): As journalists race to out-scoop each other on the news of an imminent deal between Elon Musk and his backers (including Morgan Stanley) and the Twitter Board, the latest update via Bloomberg and CNBC claims talks are now in the "final stretch" and a deal could be sealed as early as today - assuming negotiations continue to go "smoothly".

TWITTER SAID ON TRACK TO REACH DEAL WITH MUSK AS SOON AS MONDAY

Amid the headlong rush to report a final deal, it's worth noting that Twitter shares have bucked the recent market selloff (largely thanks to rumors of Musk's interest), the timing of the board's apparent engagement with Elon is certainly interesting, considering the seemingly quickening pace of the recent broader market selloff.

On that note, Twitter shares have surged more than 6% during the premarket session on the news.