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Twitter Jumps on Reports Musk Will Go Ahead with Deal at Original Price

Stock Markets Oct 04, 2022 12:55PM ET
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© Reuters. Twitter (TWTR) Jumps On Reports Musk Will Go-Ahead with Deal at Original Price
 
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By Sam Boughedda

Twitter Inc (NYSE:TWTR) shares surged around midday on Tuesday after Bloomberg reported Tesla (NASDAQ:TSLA) CEO Elon Musk is proposing to acquire the company for the original offer price of $54.20.

Citing people familiar with the matter, the publication revealed Musk made the proposal in a letter to Twitter. It marks a significant turnaround after Musk tried to pull out of the deal due to a continuing disagreement over the number of spam and bot accounts on the site, prompting a lawsuit regarding the $44 billion takeover.

Last week Bloomberg stated Hollywood super-agent Ari Emanuel had attempted to open the door for a potential settlement.

In addition, various texts were recently released as part of the legal dispute between Musk and Twitter, showing the Tesla CEO spoke to a number of people regarding the potential takeover, including Twitter's management and board and potential investors such as FTX chief executive Sam Bankman-Fried.

Following today's report, Wedbush analysts released a memo, stating: "According to media reports Musk has proposed to Twitter's Board to proceed with the $54.20 deal. This is a clear sign that Musk recognized heading into Delaware Court that the chances of winning vs. Twitter board was highly unlikely and this $44 billion deal was going to be completed one way or another."

They added that being forced to do the deal after a "long and ugly court battle" in Delaware was not an ideal scenario.

"We see minimal regulatory risk in this deal although now Musk owning the Twitter platform will cause a firestorm of worries and questions looking ahead among users and the Beltway. This is a smart move for Musk to go ahead with the deal given the legal hurdles that were ahead into Delaware," added the analysts.

Correction: Twitter stock surged around midday on Tuesday. An earlier version of this story misstated the day.

Twitter Jumps on Reports Musk Will Go Ahead with Deal at Original Price
 

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Comments (3)
Stephen Fa
Stephen Fa Oct 04, 2022 1:24PM ET
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Musk to be in charge of the bird
Michel Gwee
Michel Gwee Oct 04, 2022 1:21PM ET
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Probably got nailed by some Ukrainians who hacked  his account and released some juicy bits to Twitter .  You can put shit in your mouth and what comes out
taylor jason
taylor jason Oct 04, 2022 1:00PM ET
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once Twitter pulled those texts musk sent there was no turning back
 
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