Being Elon Musk is a real roller coaster. Today he buys Twitter, today he doesn’t and today he buys it again. This is his latest position, announcing this Tuesday that he is returning to his initial offer of 44,000 million dollars to take over the social network, in a clear sign that enough was painted for him in the civil case that the platform raised for his resignation. to the acquisition agreement reached last April.
His touch had an immediate effect. Shares of the micromessaging company were up as much as 15%, leading to a halt in trading. They finally gained 22% on the day, up to 52 dollars.
But his move, if consummated this time, will mostly mean ending one of the highest-profile legal battles in decades. On Monday night he communicated his new plan to Twitter directors. In principle, he was due to testify at the end of this week as part of preparation for the trial, scheduled for October 17.
Analysts saw in this change of third a clear defeat for Musk and a great victory for the social network, although it is not clear whether he will accept the offer, considering it a negotiating tactic by the businessman to stop the litigation.
Twitter shares rose 15%, after trading was halted
Tesla’s owner, and don’t forget the richest man in the world according to Forbes or Bloomberg, is taking back his initial offer of $54.20 a share, which he then withdrew in July in an attempt to break up the deal. He argued that the company had misled regulators and investors about the number of fake accounts and bots operating on the network. Later in his complaints he added the complaint of an inside informant, Peter ‘Mudge’ Zatko, the company’s former head of security, who explained that the company lacks protection systems.
Twitter immediately filed a civil lawsuit in the Delaware court, which specializes in this type of litigation. The company demanded in its petition that Musk comply with the agreement, attributing the billionaire’s attempt to withdraw in a situation of falling stock market and the loss of value of his companies, rather than a real concern about the real situation of Twitter.
Various sources point out that this new backtracking and return to the starting point is due to the fact that Musk has lost confidence in coming out of the legal case successfully, once he has seen a series of procedural defeats in the Delaware court. He has conceded to some of his confidants that there was every chance of getting shorn and that at some point he would be inclined to try to prove those who believe he would overpay wrong.
Be that as it may, Musk has become the constant media phenomenon, whether proposing solutions to the war in Ukraine or rescuing those trapped in Florida by the destruction of Hurricane Ian.
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Twitter shares soar after Elon Musk’s announcement to buy the company for the original offer