Billionaire Elon Musk appears, once again, to be hesitant to buy Twitter after reaching an agreement to buy the social media platform for $44 billion last April.
Although SEC filings show that it was Musk who proposed to buy the company for $54.20 a share earlier this year, the Tesla CEO appears to be regretting his latest purchase.
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Elon Musk Claims He and Other Investors Overpaid for Twitter
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Shortly after the SpaceX founder struck a deal to buy the company, he began expressing his doubts on Twitter, claiming that the number of bot and spam accounts was actually higher than reported. So he tweeted that the deal was “on hold” several times before finally filing to “terminate” the deal.
Twitter filed a lawsuit against Musk to force him to follow through on the deal; however, days before he was about to be deposed, the 51-year-old billionaire suddenly had a change of heart and agreed to buy the company at its original price.
Although Musk’s legal team has asked the social media giant to drop the lawsuit against him, Twitter has refused, calling Musk’s latest move “an invitation to further damage and delay.”
Judge McCormick in the Delaware Court of Chancery ruled in Musk’s favor and granted him a stay of proceedings. Musk therefore has until October 28 to close the deal, or a new trial date will be scheduled for November.
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Will Musk Really Go Through With Twitter’s $54.20 Per Share Offer?
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Although Elon Musk has agreed to buy Twitter for its original asking price of $54.20 per share earlier this month, the richest man in the world (at least according to Forbes), claimed that he overpaid for Twitter at the end of the earnings call for Tesla, as reported by Deadline.
During the call, Musk bemoaned the price he agreed to pay for the social media company, while at the same time acknowledging that it “has tremendous potential.”
While discussing the quarterly results with his team, Musk said, “While obviously, I and other investors are clearly overpaying for Twitter right now, the long-term potential for Twitter in my view is an order of magnitude greater than its current value.”
He also said, “I’m excited about Twitter’s situation,” calling the social media platform an asset “that has been languishing for a long time.”
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Elon Musk Says ‘I’m Not an Investor. I’m an engineer’
Twitter | Elon Musk
In late trading on Wednesday night, shares of the social media giant rose 1.49%, to about $52.60, which is still below the price Musk agreed to pay, but well above what they have been in recent months when Musk’s musy-washy tweets made. the agreement is uncertain.
Some financial analysts speculate that Musk is having trouble financing the purchase, which is why he has sold a large amount of stock in his electric car company to finance the purchase. The sale stoked uneasiness over Tesla’s future, though Musk appeared to remain calm under the mounting pressure.
On Wednesday night’s earnings call, the entrepreneur was asked about the possibility of folding all of his businesses, including SpaceX, Tesla, and Twitter, under one umbrella. Musk admitted, “It’s not clear to me what the overlap is. It’s not zero, but we’re getting there.”
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He went on to say, “I’m not Warren Buffett. I am not an investor. I am an engineer and a manufacturing person and a technologist. I actually work and design and develop products. We won’t have an investment portfolio or anything. I don’t see a clear window where they can be combined. At least now.”
It should be noted that he has not finalized his Twitter acquisition yet. Musk and his team have until Oct. 28 to close the deal, or a new trial date will be scheduled next month in the Delaware Court of Chancery, where Twitter hopes a judge will force Musk to go along with the deal.
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I will not let you down, no matter what it takes
— Elon Musk (@elonmusk) October 19, 2022
As for Musk, he issued a rather cryptic tweet Wednesday night, tweeting, “I will not let you down, no matter what it takes.”
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Source: thtrangdai.edu.vn/en/
