Twitter (NYSE:TWTR) is going to be the stock of the day as Tesla (NASDAQ:TSLA) CEO, Elon Musk has decided finally to throw in the towel and give Twitter what it deserves and that is the original offer price. The company's stock was halted a number of times yesterday when the news came out, and towards the end of the day, the stock popped more than 22% yesterday.
It is clear now that Musk's tactics to lower the price of his deal didn't work when he blamed Twitter doesn't have the number of clients that it thought it had. A large number of claims were just flimsy. Musk said that he was backing out of the agreement because Twitter had exaggerated the amount of "bots" using the site. He and his legal representatives alleged that the social media firm was deceiving investors by submitting incorrect statistics in corporate filings with the Securities and Exchange Commission.
When the company's shares declined in tandem with a wider downturn in the general market, Twitter suggested that Musk was seeking a pretext to pull out of the agreement. But these are the kind of tactics that most of companies use when they try to acquire a new company.
Now, Elon has the biggest test of his life, and that is turning the fate of the company. If there is anyone who can change the way the company works more efficiently, it is only Musk. If Musk succeeds in turning the company, he will, without any doubt, become the entrepreneur of the century.