So, this is happening after all
Image: Bitcoin.com
Elon Musk is moving ahead with his original deal to buy Twitter for ~$44 billion, per a letter he sent to the company’s board overnight Monday. The move was confirmed in an SEC filing yesterday, and comes two weeks before the parties were set to clash in court.
🐦📱 Background: Musk previously agreed to acquire the social media company for $54.20/share in late April. He tried to back out from the deal three months later, alleging Twitter misled him about the size of its user base and the prevalence of bots.
Twitter promptly sued Musk, arguing that he has to stick to the agreed-upon deal.
- In the run-up to the October 17 court date, lawyers for both sides issued subpoenas asking for evidence that could be relevant to the trial – including a trove of Musk’s personal text messages with some of the biggest names in Silicon Valley, which were made public last week.
📈 That brings us to yesterday… when Twitter’s shares were briefly halted after Bloomberg first reported Musk had changed his mind about the deal. The company’s stock rose as high as 23% once it resumed trading, eventually closing at $52.00/share.
👀 Looking ahead… Musk was scheduled to be deposed later this week as part of the preparations for the Delaware trial – though his letter to Twitter could be the “undo” button. It’s unclear if his deposition will still occur, or whether the five-day trial will move forward as planned later this month.
📊 Flash poll: All things considered, Elon Musk acquiring Twitter will have _____ on society as a whole.
See a 360° view of what the media is saying →
Sprinkles critical of Musk
- Some commentators argue that Twitter will become far worse under the leadership of Elon Musk, who hasn’t been a responsible caretaker for the companies he already oversees.
- Others contend that Twitter – and other investors – should learn their lesson and stop trusting in Elon Musk, who consistently appears to make decisions on a whim without much reasoning behind them.
- “Twitter Under Elon Musk Will Be a Scary Place” –Greg Bensinger, NY Times
- “Why Should Twitter, or Investors, Trust Musk This Time?” –Mark Gongloff, Bloomberg
- “Musk’s Twitter Will Reel From Culture Shock” –Parmy Olson, WaPo
Sprinkles supportive of Musk
- Some commentators argue that Twitter desperately needs a change in leadership and values, and that there are few better people to be at its helm than Musk, who appears to have good intentions.
- Others contend that Musk may have lofty ideas about making public discourse on Twitter better, but he’ll be hard-pressed to actually enact significant changes due to the nature of social media.
- “Go ahead and improve Twitter, @ElonMusk” –Chicago Tribune Editorial Board
- “Buying Twitter is one thing. Changing it? Good luck with that.” –Megan McArdle, WaPo
- “In Twitter, Musk Buys the Walking Dead” –Laura Forman and Dan Gallagher, WSJ
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