On October 24, CEO Elon Musk confirmed during a video conference with a group of bankers that he is prepared to close the acquisition of Twitter by Friday, October 28.
According to sources interviewed by Bloomberg, the banks provided $13 billion in financing to the electric car mogul to finalize the purchase, which is in the final stages of its paperwork.
Wall Street lenders had been preparing for weeks in anticipation of the purchase. The court handling the Twitter case set Friday, October 28, as the deadline for closing the buyout.
Following the news, Twitter’s shares began to rally, approaching the purchase price agreed upon when the two parties began negotiations.
Why Was The Twitter Purchase Delayed?
Elon Musk hesitated in the Twitter deal because he realized that there were many more bots than Twitter was publicly reporting. This upset him so much that he wanted to call off the negotiations.
At that time, Elon Musk had acquired a 9.2% stake in Twitter shares; however, he refused to buy the whole company until Twitter revealed the actual number of bots on the platform and proved that less than 5% of its users’ accounts were fake.
But the Twitter board decided to sue the billionaire, asking a Delaware court to order the execution of the agreement after accusing Musk of using a “hypocritical” strategy to rescind the purchase. In a fiery legal complaint, Twitter noted that Musk’s actions could harm the interests of its shareholders:
“Having mounted a public spectacle to put Twitter in play, and having proposed and then signed a seller-friendly merger agreement, Musk apparently believes that he – unlike every other party subject to Delaware contract law – is free to change his mind, trash the company, disrupt its operations, destroy stockholder value, and walk away,”
After learning of this news, Elon Musk posted a tweet pointing out the irony of Twitter’s actions since initially, the board tried to boycott his efforts to buy the company, only to end up trying to force the execution of the purchase weeks after the proposal.
Oh the irony lol
— Elon Musk (@elonmusk) July 12, 2022
Elon Musk Will Pay The Same Amount He Initially Agreed To
As reported by Cryptopotato, there was some white smoke between Musk and Twitter after a legal dispute. Elon Musk agreed to return to his original plan to buy the social network for $44 billion at $54.20 per share to turn Twitter into a “digital town square.”
On top of that, the billionaire promised to clean up the platform from all its bots, along with a series of changes, especially in the field of microtransactions.
All these promises reached the ears of big crypto celebrities, such as the CEO of Binance, who joined in his support to help purchase Twitter. Even Sam-Bankman Fried, CEO of FTX, said he would love to discuss how Twitter could use blockchain technology to improve its mission.
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