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After months of controversy, Elon Musk will own Twitter: the company will accept the new offer

Elon Musk arrives at the Met Gala with the theme United States: An Anthology of Fashion, at the Metropolitan Museum of Art in New York City (REUTERS / Brendan Mcdermid)

Twitter on Tuesday showed its willingness for Tesla CEO Elon Musk to acquire the social network for 44,000 million dollars, as previously agreed.

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“The company’s intention is to close the transaction by $54.20 a share”, Twitter wrote in reaction to a Musk proposal that was sent hours earlier to the company and the US Securities Market Commission (SEQin English).

It noted that the tycoon “intends to proceed to the closing of the transaction contemplated in the merger agreement of April 25, 2022, in the terms and subject to the conditions established therein.”

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Even The specific date for the consummation of the agreement is not known between the richest man in the world and one of the most popular social networks, despite the fact that it already has the approval of the shareholders of the latter.

Shareholders gave the go-ahead to the deal between the world's richest man and one of the most popular social networks
Shareholders gave the go-ahead to the deal between the world’s richest man and one of the most popular social networks

Twitter and Musk had agreed to acquire the company for the price of $52.20 a share, but the billionaire subsequently backtracked to the transaction, arguing that it had found a substantial breach of several provisions of the agreement, including the number of false accounts recorded by the company.

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In recent weeks, the owner of Tesla and SpaceX had also reproached Twitter for compensation without his consent of Peiter Zatko -former head of security-. Zatko had denounced that the social network hid relevant information from regulators about its deficiencies in cyber defense and the number of false accounts.

This offer by Musk is given two weeks before the trial began in Delaware, after the demand made by Twitter, with which it was sought to force the tycoon to proceed with the purchase. In this instance, which had a date for the October the 17thMusk hoped that the judge would exempt him from formalizing the acquisition to which he had committed.

Nevertheless, Eric Talley, a professor at Columbia University, explained that he was not surprised by this change in the CEO’s position since the trial that awaited him “was not going to be pleasant.” “On the legal side, his case was not very strong. It seemed like a typical regretful buyer scenario,” he added.

If Musk lost the case, he would not only have been seen to make the purchase but also to face the payment of interest that would have increased the priceexplained the teacher.

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If Musk lost the trial, he would not only have been seen to finalize the purchase but also to face the payment of interest that would have increased the price, explained Eric Talley (REUTERS)
If Musk lost the trial, he would not only have been seen to finalize the purchase but also to face the payment of interest that would have increased the price, explained Eric Talley (REUTERS)

In his letter to the SEC, Musk made reference to this instance and conditioned the closing of the agreement to the conclusion of the judicial process together with all the ongoing procedures related to this issue.

After hearing the news of the purchase, lThe shares of the social network soared: rose 22.24% this Tuesday to reach a value of 52.00 dollars. At the time and as a result of this, trading activity is temporarily suspended. Along the same lines, Tesla shares closed at $249.44, which means a rise of 2.90% for the end of the Wall Street session.

Likewise, the New York stock market also saw a strong rise with indices such as the Nasdaq that gained 3.34% on the day.

After the news of the purchase was known, the shares of the social network soared (AFP)
After the news of the purchase was known, the shares of the social network soared (AFP)

In July of this year, Twitter shares had low peaks that took the price to 32.7 dollars.

(With information from EFE)

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