Home Tech News What happened to Twitter stock on the day of the sale confirmation

What happened to Twitter stock on the day of the sale confirmation

What happened to Twitter stock on the day of the sale confirmation

Businessman Elon Musk reached an agreement to acquire Twitter for approximately 44,000 million dollars, the company reported Monday.

In news reports from early Monday, it was revealed that Twitter’s board of directors was negotiating with the owner of the Tesla company about the possibility of buying the social network.

Shares of Twitter rose at the open of Wall Street trading on Monday amid reports the company would soon accept Musk’s takeover offer.

By helping to boost the Nasdaq, Twitter rebounded 5.1% after sources told Reuters that he would accept Tesla boss Elon Musk’s “last and best” offer of $54.20 a share in cash.

Approximately 10 minutes after the breakthrough in the negotiation, Twitter shares traded 5.66% higher.

In the past week, Musk said he had secured $46.5 billion in financing to buy Twitter, putting pressure on the board to broker a deal.

New York Timesciting anonymous sources with knowledge of the situation, reported early Monday that the two sides were discussing details such as a timetable and fees to be paid in case the deal does not go through.

Twitter Stock Trading stopped just before 3 p.m. in New York amid reports the company could strike a takeover deal with Elon Musk on Monday. Later, it was confirmed that Musk and the company had reached an agreement.

After the confirmation of the sale, the authorities of the New York Stock Exchange lifted the suspension of the listing and in the first minutes after the confirmation of the sale the papers were trading up to 6.10% up.

Twitter had taken steps to prevent a purchase by making it prohibitively expensive. Initially, the board had considered using a so-called “poison pill” clause to make the takeover more difficult.

That clause states that if one shareholder reaches more than 15% of Twitter’s capital, the board reserves the right to sell the shares to all other shareholders. Musk currently owns just over 9% of the capital of the social network.

But the board of directors, seeing that Musk had secured the financing, changed its mind, according to The Wall Street Journalwhich was the first outlet to report the negotiations.

Last week, in documents provided to regulators in the United States, Musk said the money would come from Morgan Stanley and other banks, putting up his stake in Tesla as collateral.

According to the press, Twitter’s board of directors met Sunday to review the billionaire’s proposal.

With more than 82 million followers, The richest man in the world uses his Twitter account almost daily to give news about his companies, joke around and even launch provocations.

Musk promised to transform the social network to become “the platform for freedom of expression around the world”, without detailing the changes it intended to apply.

in recent weeksMusk has mentioned some possible reforms to Twitter, such as relaxing restrictions on its content –such as those used to suspend the account of former President Donald Trump – and the need to expel fake or automated accounts.

Musk is the wealthiest person in the world, with an estimated value, according to the magazine Forbesof 279,000 million dollars. But much of his fortune is tied to shares in Tesla – he owns 17% of the company, according to FactSet – and in SpaceX, his space travel company. It is not known for sure how much liquid money Musk has.

(With information from AP)

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