Elon Musk agrees to proceed with Twitter acquisition at original price

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Tudor Cibean

Posts: 160   +10
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In a nutshell: Elon Musk seems to have changed his mind again and will buy Twitter after all for the originally agreed-upon amount. He will end up paying $54.20 per share, with the entire deal being worth around $44 billion.

According to a new SEC filing, billionaire Elon Musk will go through with his Twitter acquisition, after all, provided the company drops its lawsuit against him. Twitter shares rose 22 percent when the news broke, while Tesla shares fell about 5 percent but have recovered somewhat since then.

So how did this whole ordeal start? In April, Musk disclosed that he purchased a 9.2 percent stake in Twitter. The company quickly offered him a seat on its board of directors, which Musk eventually rejected as it wouldn't bar him from ever acquiring a stake larger than 14.9 percent. The billionaire then announced his plans to buy the whole company in a deal worth $44 billion.

After the company accepted, Musk quickly gained cold feet, citing concerns about the number of spam and fake accounts on Twitter, among other issues. In July, he formally requested to get out of the deal, which prompted the company to sue him. That trial is scheduled to start on October 17 and might still go through if the two parties don't come to an agreement by then.

Musk likely changed his mind (again) due to his legal team reportedly believing that the case wouldn't go his way. Press reports indicate the assigned judge repeatedly sided with Twitter in pretrial rulings, with the recent emergence of a whistleblower apparently not improving expectations enough.

Twitter said it received the letter and planned to accept the deal at the price they initially agreed upon in April. Musk later tweeted that he intends to make Twitter an "everything app," which likely means expanding its feature set to more than just social media. This makes it sound a bit like WeChat, a popular social media app in China that's also used to order food, book rides, make payments, and more.

We'll have to see in the next few weeks if Twitter will go private, finally bringing this rollercoaster to an end.

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dangh

Posts: 774   +1,300
I had really high opinion on Elon long time ago, but recently he is making such weird stuff I don't know wth is he up to. He is fine entrepreneur and technician, but then he realised people listening to him and decided to be a star. And he have no idea how to do that, resulting in some stupid decisions, unnecessary social media posting and so on. He thinks that everyone should have same approach to issues like he have, and he don't like to take responsibility for his words. Instead of keeping a good relations with Twitter people, he went a superstar approach burning bridges. Now, after he will take over he will keep his personal grudges and kick out all people who somehow 'wronged' him. He seems to be such a small person. And his recent tweets on war in Ukraine as well shows that he don't care about people, just about business.
 

ZedRM

Posts: 1,337   +934
This is good news. And when the deal is done, I hope he fires the current board of directors and hires people who DON'T have their heads in the sand or up their rectums..
 
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psycros

Posts: 4,452   +6,639
And by "everything app" he means a direct Facebook competitor. That's what this was ALWAYS about.
 

Ohnooze

Posts: 348   +651
You guys have no idea what Elon is thinking, so stop guessing...
Exactly this. Funny how the Elon haters always know what he's thinking, how stupid he is and what he needs to do....as if you guys are the ones with all the answers.
Elon is doing very well without input from people on TECHSPOT.
 

Thatsdisgusting

Posts: 78   +114
Seems like "someone" got a good grip on Elon's brains - he was making so much hassle around this deal, for weeks, and suddenly he decided to acquire twitter no matter what, (looks like after that last pool) just to deny "those evil ukronazis in propaganda instrument!!11", lol.

I mean, that "someone" must be Dr. Evil himself - the only evil genious, so smart, that would easily blind and trick all those shady billionaire's habits and love for shenanigans.
 

ZedRM

Posts: 1,337   +934
Honestly, I'm sure you will find Rich = Smartest a massive majority of the time.
Oh my, no. I've met more than a couple of billionaires and near billionaires. You would find the lack of cognitive abilities shocking.. I did.
 

PEnnn

Posts: 938   +1,207
Blinked and cried uncle.

It may come as a surprise to his toadies and groupies, but he wants to avoid losing in court, big time!

 

PEnnn

Posts: 938   +1,207
You guys have no idea what Elon is thinking, so stop guessing...

But you have an idea what Musk is thinking?? LOL!!!

My idea is 100% correct: He wanted to avoid being dragged out of court crying and throwing a hissy fit!!
 

ZedRM

Posts: 1,337   +934
It may come as a surprise to his toadies and groupies, but he wants to avoid losing in court, big time!
No. He doesn't want to waste money. And a court battle would be a HUGE waste of money. Dude's got a plan. I would not want to be the CEO or member of the board of directors at Twitter when the deal finishes...

My idea is 100% correct: He wanted to avoid being dragged out of court crying and throwing a hissy fit!!
Oh please. Stop with the ego stroking...
 

Dr Roboto

Posts: 52   +118
The answer here is simple. It became clear to him that he was unlikely to win his court case and thus have to buy Twitter at the original offer or pay $1B fee. He saves face and $$$ by just going ahead with the purchase. If he goes to court and fails, then he pays for Twitter PLUS the lawyer fees (which we can all guess maybe as much as purchasing Twitter ;)
 
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