Elon Musk proposes to buy Twitter again for $44 billion
Elon Musk did everything he could to back out of his bid to buy Twitter. Now, with only days left for the trial between the two, it seems that the billionaire has a change of heart again. According to an SEC filing, Musk has reiterated his offer to buy Twitter at $54.20 per share or for $44 billion. Yes, the same offer as before.
Why does this story matter?
- For those who love real-life dramas, the Musk-Twitter saga is one that keeps giving. Musk made his first offer to buy Twitter in April.
- Since then, the deal has gone through several crests and troughs. And now, it's back to where it began - the same offer.
- This makes one wonder, what happened to the billionaire's earlier reservations?
Musk wants the court to adjourn the trial
Twitter has confirmed that they received the same letter Musk's team filed with SEC. Later, Musk took to Twitter and said, "Buying Twitter is an accelerant to creating X, the everything app." The Tesla CEO is ready to go ahead with the deal as long as the court enters an immediate stay of action and adjourns the trial and "all other legal proceedings thereto."
Is Musk's U-turn surprising?
Musk's sudden change of heart may have surprised many, but is it really surprising though? In legal circles, there has been a common sentiment that Musk will not come out of the trial looking good. An overwhelming majority believed that he will be getting the wrong end of the stick in the trial. Therefore, it seems that Musk's 'new' offer is nothing but predictable.
Twitter wants to close the deal at the same price
Despite Musk's accusations that Twitter's user base consisted of more fake/bot accounts than the company's analysis showed, Twitter has always maintained that it wants the deal to go through. It seems that the company still wants the same. "The intention of the company is to close the transaction at $54.20 per share," Twitter said on its Investor Relations account.
Twitter's shares soar after Musk's offer
When Musk offered to buy Twitter for the first time, the company's shares saw a big surge. Unsurprisingly, the billionaire's new offer had the same effect. The stock rose to $52.02/share, the highest since last November.