December 1, 2022

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Musk is moving ahead with the acquisition of Twitter - E24

Musk is moving ahead with the acquisition of Twitter – E24

This was shown in a letter to the US Financial Supervisory Authority. The stock jumped 22 percent on Wall Street.

Elon Musk was in Stavanger in August at the ONS Energy Show.
Posted:

Elon Musk’s advisors sent a letter to Twitter on Monday this week informing the company that Musk intends to move forward with the planned transaction, according to the notification to the regulator (SEC).

According to the letter, Musk is waiting for money from debt to finance the acquisition.

One of the conditions is to stop the lawsuit announced by Twitter against Musk immediately.

Twitter stock fell. The session ended up 22.28 percent to $52.02 on Wall Street.

Twitter: Will he achieve the acquisition

The price hike started earlier on Tuesday due to unconfirmed acquisition rumors.

Bloomberg, the Financial Times and the New York Times, citing anonymous sources, wrote that Musk would go ahead with the agreement to buy Twitter for $54.2 per share.

Then it stopped working temporarily.

Musk wants to get the takeover on the original terms. Twitter confirms that the company intends to conduct the transaction at $54.2 per share.

The tender valued Twitter at $44 billion.

Offer canceled this summer

In July, Elon Musk confirmed that he had informed Twitter of the termination of the plan to buy the company.

The letter to Twitter stated that Musk and his financial advisors at Morgan Stanley had requested “important information” from May 9, and “repeatedly thereafter” about the company’s relationship between the published numbers of gaining daily active users and the spread of “false – or spam” accounts” on the platform.

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Twitter stated that the company faces several challenges before finalizing the deal with Musk, such as whether advertisers will continue to use Twitter and potential uncertainty regarding the company’s future plans and strategy.

At the end of April, it became known that the Twitter board of directors accepted the offer of Tesla CEO Elon Musk to buy the entire company, after a week and a half of fighting.

sued

Twitter has previously sued Elon Musk and demanded that the Tesla boss comply with an agreement to buy the company for $44 billion – or about NOK 420 billion at today’s exchange rate.

In this case, the trial will take place in October.

He described the decision as a “victory” for Twitter.

Previously, Twitter lawyers accused Musk of trying to “sabotage” the company. They argued that the trial should take place quickly, to prevent further damage to Twitter’s operations, the Financial Times wrote.

Musk’s lawyers, for their part, wanted the trial to take place next year, so that “their side will be heard in a reasonable manner.”

In the takeover agreement, the parties agreed on a so-called divorce fee. It involves a reciprocal fee of $1 billion that must be paid by the party breaching the agreement.

But Twitter could also take Musk to court to secure a higher breach fee — or, as they do now, demand that the deal be executed.