Elon Musk's on-again off-again Twitter deal is back on
Tesla CEO Elon Musk has reportedly renewed his $44 billion offer for Twitter, with news of the potential purchase sending shockwaves across Wall Street.
Musk and Twitter has a strained relationship, ever since the Tesla chief offered to buy the company then withdrew over supposed bot issues. In the latest salvo of the affair, Elon seemingly once again wants to take control of Twitter.
Sources of Bloomberg with knowledge of the offer, claim that Musk has renewed his offer to buy Twitter. Details of the new attempt have yet to surface, but the proposal letter from Musk has been independently confirmed by CNBC.
Following the publication of the report, shares in Twitter surged by 15%, with the stock later halted.
In April, Musk offered to purchase Twitter outright for $44 billion, at a price of $54.20 per share. However, one month later, Musk put the purchase on hold over a disagreement about spam accounts, demanding proof on claims by Twitter that fewer than 5% of users on the service were fake.
After threatening to walk away from the deal after assurances from Twitter CEO Parag Agrawl, Musk started the process to exit the deal in July. That same month, Twitter sued Musk in an attempt to force the billionaire into buying the platform at the agreed price.
The two sides were heading towards a courtroom battle on October 17 over the affair.
Read on AppleInsider
Musk and Twitter has a strained relationship, ever since the Tesla chief offered to buy the company then withdrew over supposed bot issues. In the latest salvo of the affair, Elon seemingly once again wants to take control of Twitter.
Sources of Bloomberg with knowledge of the offer, claim that Musk has renewed his offer to buy Twitter. Details of the new attempt have yet to surface, but the proposal letter from Musk has been independently confirmed by CNBC.
Following the publication of the report, shares in Twitter surged by 15%, with the stock later halted.
In April, Musk offered to purchase Twitter outright for $44 billion, at a price of $54.20 per share. However, one month later, Musk put the purchase on hold over a disagreement about spam accounts, demanding proof on claims by Twitter that fewer than 5% of users on the service were fake.
After threatening to walk away from the deal after assurances from Twitter CEO Parag Agrawl, Musk started the process to exit the deal in July. That same month, Twitter sued Musk in an attempt to force the billionaire into buying the platform at the agreed price.
The two sides were heading towards a courtroom battle on October 17 over the affair.
Read on AppleInsider
Comments
This is a false rumours that either came out of wishful thinking by some analyst, possibly to pump the stock.
This is real, but Musk is offering well below his original price and hoping Twitter will bite on this trial balloon.
This is real because Musk has realized he’s going to lose in court, and just wants to get it over with.
Heck, I suspect at least 5% of the accounts HERE on AI are fake.
https://twitter.com/TwitterIR/status/1577380758192197632
The financial implications are that the monetised user figures are pretty darned accurate, company revenue is therefore not being materially affected by the presence or absence of fake accounts in this user pool, and any proposal to purchase the company can be made with the assumption that the published figures represent a true and accurate picture of Twitter's financial position.
Any difference between a "rational" analysis of the business to arrive at a share price and the price offered by a potential purchaser is chalked up to "Goodwill" (which can be a negative number) and that gets depreciated over a number of years. If you're offering more than the fair market value of the net assets of the business then you believe the Goodwill can be converted into real assets; if you don't then either don't make the offer or withdraw it after you've seen the accounts. Because demonstrating the accounts takes time and effort, the business in question will often impose a cancellation fee if the potential purchasers backs out. This all gets negotiated upfront.
Because Wall Street is clearly populated by the sort of people who react to rumours as though they were fact, under the assumption that if you don't move fast enough someone else will beat you to the deal.
I like Warren Buffet's advice: behave as though you can only invest in 40 stocks in your lifetime.
Wait and see.
And I'm all for it. Funny how the left loved to trumpet Twitter was a public company and could do anything they want and if you didn't like it just start your own platform. Now that one of their pet mouthpieces is getting neutered all the sudden it's pRoBlEmAtIc that Twitter is going to be even more private. Freaking hypocrites.
If only Elon really was the genius that he believes he is, and not his actual narcissistic self, he would have secured funding prior to making a play for Twitter.
"Funding secured" was fraud then, to pump up his stock, and its fraud now.
Good luck on funding it now.
https://www.mayoclinic.org/diseases-conditions/narcissistic-personality-disorder/symptoms-causes/syc-20366662
Fits both Trump and Musk like a glove...
Your post here captures the essence of the utter vacuity of our socio-political-tech discourse today. What an embarrassment for a 10,000+ AppleInsider poster.
PS: I'd be curious to hear from you what Elon Musk has done to you or your family or your dog or, for that matter, anyone you know, to justify your apparent ad hominem hatred.