Published , by Asif Khan
Published , by Asif Khan
Elon Musk has reportedly changed his mind about the Twitter deal again and will now go through with his original offer to buy the social media company for $44 billion.
Bloomberg reports that Elon Musk is once again proposing to buy Twitter for $54.20/share. The Tesla CEO sent a letter to Twitter affirming his decision to carry out the $44 billion acquisition. After months of trying to squirrel out of the deal, it has become very apparent that the billionaire entrepreneur failed to carry out proper due diligence before making the original offer back in April. Buyer's remorse is not cause for a break of the deal, and now the acquisition will likely go through despite Musk's best efforts in Delaware court.
Over the past month, Twitter and Musk's lawyers have been battling it out in Delaware. Twitter's lawyers have been rather transparent about the sticking point of monetizable daily active users (mDAUs) being the metric the company uses to measure its success. Musk has spent most of 2022 calling Twitter's management out for poor disclosure of the number of bots on the platform. Twitter provided even more disclosure on how activity is measured, but these were questions Musk should have been asking before agreeing to a deal at the end of the day.
While today's news may be the beginning of the end of this ridiculous period for Twitter shareholders, users of the social media platform are now staring down a future with Elon Musk in charge. Hopefully this transition of power goes smoother than that Optimus Robot demonstration this past weekend.
Twitter Investor Relations has confirmed the company's receipt of the letter from Elon Musk and intend to close the transaction at $54.20/share.
This article is only meant for educational purposes, and should not be taken as investment advice. Please consider your own investment time horizon, risk tolerance, and consult with a financial advisor before acting on this information.
Full Disclosure:
At the time of this article, Shacknews primary shareholder Asif A. Khan, his family members, or his company Virtue LLC had the following positions:
Long Twitter via TWTR shares