| Update (4/10/22 10:16 PM): Twitter announces that it has received a purchase proposal from Elon Musk that honors the April offer. We have UPDATED the article with the official information. |
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Twitter’s price on Wall Street has been suspended waiting for a possible sale agreement. After many twists and turns, Elon Musk reappears on the scene. The CEO of Tesla has put the initial offer to buy the social network back on the table.
We are talking about the purchase price established in April this year when he promised to “unlock the potential of Twitter”. This consisted of paying $54.20 a share54% more than the shares were worth before Musk announced that he had become the maximum shareholder.
The novel by Elon Musk and Twitter opens a new chapter
The news has caused a immediate impact on the stock market. Twitter actions, that they had been negatively impacted when Musk withdrew his purchase offerrose 12.7% to $47.93, and tesla stock they also rose 1.5% to $243.81.
Twitter issued this statement about today’s news: We received the letter from the Musk parties which they have filed with the SEC. The intention of the Company is to close the transaction at $54.20 per share.
— Twitter Investor Relations (@TwitterIR) October 4, 2022
Such an agreement would be a clear victory for Twitter. The social network sued the businessman before the Delaware Court of Chancery with the intention that the purchase be completed in the original terms, that is, paying a total of $44 billion.
Recall that the trial for the purchase of Twitter is scheduled to begin on October 17. Despite his attempts, Elon Musk had not managed to delay it and, according to previous rulings, he had also failed to convince Judge Kathaleen McCormick, who had sided with the social network.
Since he decided to withdraw his purchase offer, the businessman has tried to find reasons to get out of the agreement. On many occasions he has accused the social network of making “false and misleading” statements in relation to the number of bots and spamnot making clear the number of monetizable users.
It remains to be seen how this matter will develop and what will happen with the trial. However, taking into account the latest movements, it is possible that before this story comes to an end we will have the odd surprise.
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Elon Musk now wants Twitter: he puts his initial offer back on the table