Elon Musk
Elon Musk appears to have reconsidered buying Twitter once more and is now ready to move through with his acquisition of the social media network.
Before attempting to back out of the transaction, Mr. Musk promised to pay the fee he proposed in a letter to the company.
Just a few weeks prior to the two parties’ scheduled court appearance, the unexpected reversal occurred.
It was believed that Twitter, which had sued Mr. Musk to compel the merger to proceed, had the better argument.
In the letter, Mr. Musk’s counsel stated that he wanted to proceed with the acquisition in the event that financing could be obtained and the legal dispute was resolved.
Twitter Gets Fast-Tracked Elon Musk Trial Over $44 Billion Deal
Elon Musk & Twitter
Twitter confirmed that it had received the bid and stated that it intended to conclude the deal at the $54.20 per share price that Elon Musk had guaranteed in April.
Twitter’s shares increased by more than 20% to more than $52 per share following the apparent victory. However, the valuation remained below the acquisition price, a symptom of persistent investor skepticism about the deal’s viability.
“Buying Twitter is an accelerant to inventing X, the everything app,” Mr. Musk tweeted later on Tuesday.
When Mr. Musk first announced ambitions to purchase Twitter for $44 billion, he stated that he wanted to purge the platform of spam accounts and keep it as a forum for free speech.
A few weeks later, the billionaire, a frequent Twitter user renowned for his impetuous behavior, protested at the acquisition, claiming there were more false accounts on the site than Twitter had indicated.
The CEO of Twitter refuted the allegations, saying that Mr. Musk, the richest man in the world with a net worth of more than $220 billion, wanted out because he was concerned about the price.
The back-and-forth came after a dramatic decline in the value of technology stocks, particularly Tesla, which Mr. Musk runs and which is the foundation of a large portion of his wealth.
The Dispute
The two sides in the dispute, which was set to go to trial on October 17, engaged in long legal papers, private correspondence, and acrimonious public Twitter fights.
In one such conversation, Mr. Musk sent the emoji for feces in response to Twitter CEO Parag Agrawal.
As lawyers for the two businesses wanted communications about the merger, trial preparation has ensnared many of the top personalities in tech.
This week, Mr. Musk was scheduled to be examined before to the trial. He could have paid a $1 billion break-up fee to withdraw.
Some observers of the sector, who were caught off guard by the news, questioned whether the most recent twist represented a real offer or was simply a delaying strategy.
The two sides in the dispute, which was set to go to trial on October 17, engaged in long legal papers, private correspondence, and acrimonious public Twitter fights.
In one such conversation, Mr. Musk sent the emoji for feces in response to Twitter CEO Parag Agrawal.
As lawyers for the two businesses wanted communications about the merger, trial preparation has ensnared many of the top personalities in tech.
This week, Mr. Musk was scheduled to be examined before to the trial. He could have paid a $1 billion break-up fee to withdraw.
Staff at Twitter, which has been rocked since Mr. Musk began focused on the company, told the BBC that their management originally remained silent on the topic even as the news gained widespread notice.
Investors have long doubted that the purchase would proceed, especially since Mr. Musk was perceived as giving a hefty price for a company that was having trouble gaining customers and expanding.
At the outset of the day, shares in Twitter were trading for less than $43 each.
The company’s shares shot up about 13% after learning that Mr. Musk had suggested to uphold the original deal before trading was suspended.
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