Elon Musk now wants to buy Twitter at a previously agreed price as per his original offer. Today we will talk about whether Elon Musk actually bought twitter and why Elon Musk would buy twitter. Let's find out by reading the article below.
Did Elon Musk actually buy Twitter?
In the weeks before Elon Musk announced that he was re-bidding Twitter, his representatives had spoken to the company several times about redoing the deal at a lower price, four people familiar with the discussions said. Musk is seeking discounts of up to 30 percent , a proposal that values the company at about $31 billion, three of the people said. Twitter rejected the offer, the people said, asking not to be named because the talks are confidential.
Over the past week, however, discussions have narrowed to about a 10 percent discount, which would allow Musk to pay Twitter about $39.6 billion. Those negotiations ultimately went nowhere. As of Wednesday, Twitter's market cap was $39.2 billion.
Twitter eventually filed a lawsuit to force Musk to close the deal. In the lawsuit, Twitter argued that Musk was concerned about the price he agreed to pay after a sharp decline in the value of tech stocks, including Tesla, the electric car company he leads , that underlies much of his wealth.
On Monday night, Musk sent a letter to Twitter offering to pay the full initial price for the company. Musk, the chief executive of Tesla and SpaceX, said closing the deal hinged on his ability to secure financing from the banks that agreed to back his April bid of $54.20 a share. Musk will be required to pay a breakup fee of $1 billion if the bank does not meet its financing commitments. He also asked Twitter to stop its lawsuit against him."The company's intent is to complete the transaction at $54.20 per share," Twitter said in a statement Tuesday in response to Musk's letter.
Twitter is considering a range of options to increase transaction certainty. They include court oversight of the closing process to ensure Musk lives up to his commitments and requiring Musk to pay interest to compensate for delays in the closing, sources familiar with the talks said.
Musk will be questioned this week as part of preparations for a trial scheduled to begin on Oct. 17. According to a court filing, the trial has now been postponed until October 28 to allow the deal to close. Shares of Twitter ended the day down more than 3 percent as investors doubted the deal would go well.
Why would Elon Musk buy Twitter?
It's unclear why Musk chose to drop the fight in court. But Eric Tully, a law professor at Columbia University, said he wasn't surprised by Musk's decision. "His case doesn't look that strong in terms of legal grounds," he said.
Musk will be sworn in in court on Thursday. Tully added that "a lot of disturbing facts will come to light." The Tesla and SpaceX founder also faces the possibility of rising costs. If he loses, the judge can not only force him to close the deal, but also order interest payments, which would add to the cost.
Musk and his representatives have yet to answer questions from news organizations about the latest proposal to close the Twitter deal. As a Twitter user, Musk wrote on the social media site last night: "Buying Twitter is an accelerator to create X, the app for everything." He didn't provide further details.
Hopefully, you will now know whether Elon Musk actually bought twitter and why Elon would buy twitter. Musk said that if he bought Twitter, he would make significant changes to the current business model that relies on advertising.
