Elon Musk’s on-again, off-again proposal to purchase social media giant Twitter is back on-again..Musk proposed going through with his original deal to buy Twitter for US$44 billion, a bid to avoid a court trial over the hotly contested agreement slated for later this month, sources told The New York Post..The saga began April 4, when it was revealed Musk had purchased 73.5 million shares in Twitter, 9.2% of its overall shares, valued at US$2.89 billion, making him the largest shareholder in the company and a member of the board of directors..On April 14, Musk pulled the plug on sitting on Twitter’s board, while announcing his intention to buy the entire company and take it private..In a letter to Bret Taylor, chairman of the board, Musk wrote: “Since making my investment I now realize the company will neither thrive nor serve this societal imperative in its current form. Twitter needs to be transformed as a private company..As a result, I am offering to buy 100% of Twitter for $54.20 per share in cash, a 54% premium over the day before I began investing in Twitter and a 38% premium over the day before my investment was publicly announced. My offer is my best and final offer and if it is not accepted, I would need to reconsider my position as a shareholder.”.Discussions between the two parties went back and forth, with each sparring to get the best deal, resulting in bad blood and the apparent death of the deal..Twitter sued Musk when he refused to go through with the deal, in a trial that was scheduled to open on Oct. 17..The deal is back on, with Musk again offering $54.20 per share..Twitter’ attorneys were set to depose Musk this week, raising the prospect that the last-minute deal was made in part to avoid the deposition. .An attorney for Musk declined to comment. Twitter did not immediately respond to requests for comment. .Analysts who cover Twitter say $54.20 is an astronomically high price to pay for the social media site, saying without Musk’s involvement, Twitter would be trading in the $20 range..If Twitter accepts Musk’s proposal, the company would withdraw its lawsuit against Musk in Delaware’s Court of Chancery, with Musk also withdrawing a counter-suit he has against the company..Settling for $54.20 per share could also help Musk avoid costly pre-judgment interest payments that could have driven up Twitter’s price by hundreds of millions of dollars, say analysts..Charles Payne, financial journalist on FOX News says it’s likely a done deal..“There was always a belief by almost everyone on Wall Street that this deal was going to get done, but when the market cratered and the stock fell apart it was obvious Elon Musk was trying to get a better deal,” says Payne. “It’s clear he’s not going to get a better deal and apparently, he’s written a letter to the board.”.“The word now is this deal will be done in the next 24 to 72 hours and Elon Musk will be the owner of Twitter come next week.”
Elon Musk’s on-again, off-again proposal to purchase social media giant Twitter is back on-again..Musk proposed going through with his original deal to buy Twitter for US$44 billion, a bid to avoid a court trial over the hotly contested agreement slated for later this month, sources told The New York Post..The saga began April 4, when it was revealed Musk had purchased 73.5 million shares in Twitter, 9.2% of its overall shares, valued at US$2.89 billion, making him the largest shareholder in the company and a member of the board of directors..On April 14, Musk pulled the plug on sitting on Twitter’s board, while announcing his intention to buy the entire company and take it private..In a letter to Bret Taylor, chairman of the board, Musk wrote: “Since making my investment I now realize the company will neither thrive nor serve this societal imperative in its current form. Twitter needs to be transformed as a private company..As a result, I am offering to buy 100% of Twitter for $54.20 per share in cash, a 54% premium over the day before I began investing in Twitter and a 38% premium over the day before my investment was publicly announced. My offer is my best and final offer and if it is not accepted, I would need to reconsider my position as a shareholder.”.Discussions between the two parties went back and forth, with each sparring to get the best deal, resulting in bad blood and the apparent death of the deal..Twitter sued Musk when he refused to go through with the deal, in a trial that was scheduled to open on Oct. 17..The deal is back on, with Musk again offering $54.20 per share..Twitter’ attorneys were set to depose Musk this week, raising the prospect that the last-minute deal was made in part to avoid the deposition. .An attorney for Musk declined to comment. Twitter did not immediately respond to requests for comment. .Analysts who cover Twitter say $54.20 is an astronomically high price to pay for the social media site, saying without Musk’s involvement, Twitter would be trading in the $20 range..If Twitter accepts Musk’s proposal, the company would withdraw its lawsuit against Musk in Delaware’s Court of Chancery, with Musk also withdrawing a counter-suit he has against the company..Settling for $54.20 per share could also help Musk avoid costly pre-judgment interest payments that could have driven up Twitter’s price by hundreds of millions of dollars, say analysts..Charles Payne, financial journalist on FOX News says it’s likely a done deal..“There was always a belief by almost everyone on Wall Street that this deal was going to get done, but when the market cratered and the stock fell apart it was obvious Elon Musk was trying to get a better deal,” says Payne. “It’s clear he’s not going to get a better deal and apparently, he’s written a letter to the board.”.“The word now is this deal will be done in the next 24 to 72 hours and Elon Musk will be the owner of Twitter come next week.”
