By: Economic & Finance Report
Elon Musk has spoken, and has decided to go all in with the Twitter take over ($44 billion deal). His attorney’s confirmed the developments Monday evening October 3, 2022, with an open letter to the Twitter board. The Twitter executive board also accepted the letter, and issued a statement stating they also will complete the takeover bid by Musk & Co.
The latest developments have been a whirlwind for the past 5-6 months, from both parties (Musk & Twitter). When Mr. Musk first offered his intentions to purchase the social media mega giant, he indicated that he would make the purchase price at $54.20/share, and the Twitter board accepted the offer. He also made it known that the company would be a private entity, not a publicly traded company; along with increasing the optimization of advertisement monetization; and the handling of the excess of bots and spam accounts associated with the platform. Musk insisted all these detriments needed and would be addressed, as long as he was leading the ship at Twitter.
The announcement comes to a relief to various parties, as arbitration would not have been the best steps for all involved, but legal analysts and legal experts had indicated that Musk was in a weaker position then his counterparts. The arbitrational trial would have been conducted in the state of Delaware, and it is noted that Musk would have been on weaker footing going forward, if the trial proceeded. This had been noted by the experts, and analysts, who had been researching and following the matter.
There had been talks behind the scenes by both parties to come to a resolution of sorts; instead of the implications of a trial; and the decision by the judge in the case. So, the fact that Musk and the Twitter board agreed to proceed and conclude the acquisition, was noble by both sides. Hence, the deal will go forward. -SB
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