According to reports, Tesla’s Elon Musk now plans to purchase Twitter Inc. for the original asking price of $54.20 a share. Twitter’s shares surged following the news and climbed nearly 20% higher and trading was halted twice so far.
Report Claims Tesla’s Elon Musk Will Purchase Twitter at the Original Asking Price
Elon Musk seems to plan to go through with the purchase of Twitter (NYSE : TWTR), after wanting to abandon it due to lack information regarding automated accounts, also known as bots. The news follows the recent shareholders’ vote that saw Musk overwhelmingly chosen by the majority of shareholders. Bloomberg was the first to report on the news on Tuesday, October 4, 2022, and after Bloomberg’s report was published, Twitter shares surged causing NYSE’s equity markets to halt trading.
Twitter shares have risen 12.67% at press time and are currently trading for $47.93 each TWTR share. According to Bloomberg’s Jef Feely, Ed Hammond has cited people who have knowledge about the subject and Musk is believed to have written a letter. According to CNBC, the newsdesk “independently confirmed Musk’s renewed offer.” The latest deal also follows the commentary between the former Twitter CEO Jack Dorsey and the Tesla executive.
Musk and Dorsey exchanged texts explaining why Dorsey left Twitter. Musk stressed that Twitter should never have become a business. “A new platform is needed. It can’t be a company. This is why I left,” Dorsey wrote. The Twitter founder further added that the social media platform should be “an open source protocol, funded by a foundation of sorts that doesn’t own the protocol, only advances it.”
Furthermore, Musk was fighting with Twitter about lack of information concerning the social media platform’s number of automated accounts. Musk stated that he would walk away from the agreement and gave reasons for why. Prior to the recent letter to Twitter that says Musk will go through with the purchase, the two parties (Musk & Twitter) were planning to convene in court on October 17 over the disagreements and termination.
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