Why Elon Musk Now Says He'll Buy Twitter
1With Twitter's lawsuit against Elon Musk (and Musk's cross complaints) expected to go to trial in less than two weeks, the richest man in the world (with a net worth of nearly $248 billion) has made an abrupt 180-degree change and says that he wants to go ahead with his $44 billion purchase of Twitter at $54.20 per share. Musk had hoped to back out of the deal when Twitter couldn't prove to his satisfaction that less than 5% of Twitter users were bots.
As you might imagine, Twitter shares soared in New York Stock Exchange trading today rising $9.46 or 22.24% to $52. Twitter has yet to accept Elon's change of mind and is looking to add conditions to the contract to make sure that Musk doesn't back out again. According to The New York Times, Twitter received the letter from the Tesla executive expressing his interest in keeping the terms of the original deal and the company says that it has every intention of completing the transaction.
Musk filed an amended 13D indicating that he holds 73.12 million shares of Twitter or 9.6% of the company. The current valuation of these shares amounts to over $3.8 billion. The 13D filed by Elon's team says, "the Reporting Person (Musk) intends to proceed to closing of the transaction contemplated by the April 25, 2022 Merger Agreement, on the terms and subject to the conditions set forth therein and pending receipt of the proceeds of the debt financing contemplated thereby, provided that the Delaware Chancery Court enter an immediate stay of the action."
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