The businessman was to face the company in court from October 17, for having canceled a first offer proposed in the spring of 2022.
This is a new, to say the least, unexpected episode in the saga between Elon Musk and Twitter. After giving up on a first takeover project on July 8, the boss of Tesla and SpaceX finally wants to proceed with the acquisition, according to the initial terms, which value the company at 44 billion dollars, reports the American media. Bloomberg. That is, $54.20 per share.
As later confirmed by Twitter, Elon Musk reactivated his offer through a letter sent to Twitter. Following the news, the company’s stock was briefly suspended, before climbing 22%, closing the day at $52. The social network confirmed in a brief statement “to have received the letter” and to have the intention “to conclude this transaction” at the defined price.
Big financial risk
After proposing to buy the social network in the spring, Elon Musk had assured that he wanted to further protect freedom of expression on the platform and fight against fake accounts. A few weeks later, it was these same fake accounts that were invoked by Elon Musk to cancel the takeover agreement. The latter believing, without disseminating evidence, that Twitter was hiding the true number of fake accounts.
This change in attitude could be closely linked major financial threats that weigh on Elon Musk, while Twitter shareholders are determined to sue him. A trial, aimed precisely at forcing him to proceed with the takeover or at condemning him to significant financial penalties, must be held from October 17. Elon Musk’s new offer is naturally conditional on the charges being dropped.
Despite the arguments put forward by Elon Musk to give up the takeover of Twitter, many analysts had linked this withdrawal to the violent stock market falls affecting in particular Tesla, whose shares were to be used to finance the operation. Very present on the platform, Elon Musk has not yet commented on the information disseminated by Bloomberg.