According to reports, Tesla’s Elon Musk now plans to acquire Twitter Inc. at an initial asking price of $54.20 per share. Twitter’s stock surged on the news, rising nearly 20%, and trading has been halted twice so far.
Reports claiming Tesla’s Elon Musk will buy Twitter for the original asking price
After Elon Musk tried to withdraw from the deal citing a lack of information about automated accounts known as bots, Twitter (NYSE: TWTR), it appears that he plans to execute a deal to acquire the company. The news follows the recent shareholder vote in which Musk was elected by an overwhelming majority. Bloomberg first reported the news on Tuesday, October 4, 2022, and after Bloomberg’s report was published, Twitter’s stock price soared and the New York Stock Exchange stock market was forced into a trading halt.
At press time, Twitter’s stock was up 12.67%, priced around $47.93 per TWTR share.A report out of Bloomberg, written by Jef Feely and Ed Hammond, quotes a person familiar with the matter as saying Musk allegedly wrote to Twitter. According to CNBC, the news desk “independently confirmed Musk’s updated offer.” The deal also followscommentsbetween former Twitter CEO Jack Dorsey and Tesla executives.
Texts between Dorsey and Musk explain why Dorsey decided to leave Twitter as he stressed that the social media platform should never have become a company.” We need a new platform. It shouldn’t be a company. This is why I left,” Dorsey wrote, adding that the Twitter founder added that the social media platform should be “an open source protocol, funded by a kind of foundation that doesn’t own the protocol, just promotes it.”
Additionally, Musk had a dispute with Twitter over the lack of information regarding the number of automated accounts on the social media platform. He explained that he intended to back out of the deal and gave several reasons why he wanted to terminate the acquisition. Prior to the recent letter to Twitter that Musk would go through with the purchase, both parties (Musk& Twitter) were scheduled to convene in court on October 17 over the disagreement and termination.
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