Elon Musk Announces Revival Of Twitter Deal Causing Its Shares To Rising By 22%
The share prices for Twitter have recorded a significant push in the latest trading session. The resurgence of Twitter’s shares is due to the reverse course Elon Musk has taken in regard to his decision of proceeding with the Twitter deal.
Elon Musk Resumes Twitter Deal
The reports confirm that Elon Musk has revealed he is planning to buy Twitter at the base price. He has proposed to buy the social media giant for a price of $54.20 per share.
The information has been shared by the US SEC because Elon Musk mentioned the proposed deal in the latest filing submitted to the regulator on Tuesday.
Just after the news came out, it rejuvenated the confidence of the investors who jumped at the opportunity. Twitter shares saw a great rally, which helped its shares surge more than 22% on a particular day.
Twitter Acknowledged the Reports
Twitter officials have also acknowledged the report confirming that they have received a letter from Elon Musk’s legal team.
The letter confirms that Elon Musk intends to reopen the line of a deal between him and Twitter. The letter also has the proposed offer from Elon Musk to buy Twitter at a price of $54.20 per share.
A Deal May Take Place Very Soon
There are now reports that a deal may be forged between Elon Musk and Twitter, and this time, it won’t be delayed. Many are expecting that the deal may get finalized as soon as Friday.
Right after the news, the stock activity for Twitter came to a halt before it recorded a huge surge. Once the market had digested the news, they proceeded with buying Twitter’s stocks and its value went up.
Elon Musk wants to Continue with April 25 Proposal
In the filing submitted at the US SEC on Monday, Elon Musk revealed that he had reopened the deal with Twitter to acquire the social media platform.
For the purpose of acquisition, Musk proposed to continue with the deal from April 25. It was in the April 25 proposal where Elon Musk had proposed to acquire Twitter for a price worth $54.20 per share.
The CEO of Tesla wants to continue with the same deal but there is no telling what Twitter may have in mind.
A Story of Ups and Downs
It was early April when Elon Musk announced he was planning to buy Twitter. In the later part of the month, it was confirmed that Elon Musk had initiated a deal to buy Twitter for the mentioned amount.
The overall value of the deal was $44 billion but later, Elon Musk announced he was not going to proceed with the deal. It was because he had reasons to believe Twitter had more than 5% bot accounts operating on the platform.
Many claimed that Elon Musk attempted this to create panic in the Twitter market and lower its market price, making the deal much cheaper for him.
Turns out, things haven’t turned out as expected for Elon Musk and now, he is planning to go back at the same deal.