Seems like Elon Musk is often in the news these days. He is a controversial personality with fans and critics both passionate about their opinions on him. Recently, he once again came under the spotlight due to his attempts to withdraw from the Twitter deal. After he realized he could not manoeuvre his way out, and that the court would not let him get away with it, he decided to go ahead and buy Twitter based on the price he had suggested at first, which is $44 billion, or $54.20 per share.
Musk fails to back out of the deal he proposed, so he moves forward with it anyhow
The failure to back out is basically a result of Twitter suing Mr Musk, and the latter came to the conclusion that he was on his way to losing the case. His main complaint had originally been that Twitter is home to a large number of fake accounts, specifically more than 5%. In reality, many analysts believe that percentage to be much higher – so Musk wasn’t wrong there. However, Musk did not do his due diligence before making the initial offer, and got stuck with an overpriced deal. And now paying the price he initially proposed seems like a better option for him than losing the case being forced to buy the company anyhow (perhaps with a fine on top of that).
As a result of Musk’s actions, twitter’s share price fluctuated. It is currently trading at around $49 per share. You can trade twitter CFDs with a renowned broker like easymarkets.com, and that can help you to enter long or short positions on Twitter shares CFDs.
Musk has until 28 October to complete the deal
The judge gave Musk until 28 of October to finalize the deal, and it seems the Tesla CEO will meet that deadline. He recently commented about Twitter: “I think it’s an asset that has sort of languished for a long time but has incredible potential.” And that “the long-term potential for Twitter is an order of magnitude greater than its current value.”
Those comments represent a change in attitude from Musk, who spent the summer posting negative tweets about the social platform and accusing it of misleading investors. He will not be the only one investing in the company, as he has received backing from other investors like the Saudi Arabian investor Prince Alwaleed bin Talal, among others.
Should the deal go, what will happen to Twitter?
At this point, it seems likely that the deal will be finalized, and that Musk will acquire the company and add it to his ever-growing portfolio, alongside other familiar names like Tesla, SpaceX, and StarLink. However, many analysts are concerned that this might be an overload, even for a man like Musk. The fragmented attention can cause Musk to make mistakes along the way. The effects of this, should it happen, can be negative not just for investors but also for the people on the platform and society at large.
Twitter is a big platform with over 390 million users. It has a sway on US politics and public opinion. Musk wants to use it to champion free speech, or at least so he says. With a little patience, the results of this dramatic acquisition, should it happen, will become clear.
