New informations are shared about Elon Musk and his $44 billion takeover deal of Twitter Inc.
CEO & founder of Tesla Inc. has been sued after cancelling his Twitter Inc. purchase. He proposed a price of $54.20 per share back in April, which he now has to fulfill, as Twitter’s lawsuit made in July forces Mr. Musk to close his deal with a proposed price per share.
Because of Elon Musks’ decision, Tesla shares decreased significantly, as CEO of Tesla sold around 9 billion$ of company’s shares, as a portion of money which would be used to finalize the deal.
It is said that Musks’ lawyers refused to hand over documents to Twitter, which they reffered to as a “investigative privilege“.
After few months, in September, all documents have been handed in – including a specific “drafts of a 13 May email to the US Securities and Exchange Commission (SEC) – the American regulator which enforces the law against market manipulation.” as BBC news article states. There were also documents handed to FTC – Federal Trade Comission (which mission is to promote “antitrust law and consumer protection”).
However, Alex Spiro, who is Elon Musks’ attorney, stated that “Twitter’s court filing was a “misdirection“.”
He stated that “It is Twitter’s executives that are under federal investigation” which suggests that it is not about Elon Musk. After the statement, Twitter Inc. did not wanted to leave a comment.
Eventually, Elon Musk decided to get back with continuing and finalizing the deal. In early October, Twitter’s shares increased from ~42$ per share, to 52$, which is equivalent to 23% – as a result of Musks’ decision.
Thank you for reading through this article. Let me know in the comments if you think this whole ”Twitter vs. Musk” deal is a set-up or just a speculation? Also, are you on a side of Elon Musk or Twitter as a whole company? How would you like this whole situation to finish?
Sources:
https://www.marketwatch.com/investing/stock/twtr/charts?mod=mw_quote_advanced
In my opinion whole case with several fake accounts was planned before, just to make make a fuss about the deal and increase the value of shares.