I don’t understand how we got here again.
According to Bloomberg, Elon Musk has revived his bid to buy Twitter. According to a US Securities and Exchange Commission filing, the billionaire is once again offering to buy the company for $54.20 per share originally agreed.
Elon Musk revived a bid to buy Twitter Inc. at the original price of $54.20 per share, reversing its efforts to close the deal and potentially avoiding a courtroom dispute.
It took Twitter, as well as Twitter, to announce that it plans to close the deal.
Musk made the proposal in message on Twitter on Monday, according to a Securities and Exchange Commission filing that confirmed the Bloomberg report. Twitter shares rose 22% to $52 at the close in New York. San Francisco-based Twitter said it had received the letter and intended to close the deal at the agreed-upon price.
Twitter issued this statement on today’s news: We received a letter from the Musk parties that they submitted to the Securities and Exchange Commission. The company intends to close the position at $54.20 per share.4 October 2022
Why does this happen?
Musk originally offered to buy Twitter for $54.20 a share in April, so this back and forth has been going on for six months now. Originally, it looked like the deal would be done.
However, over the course of the summer, an economic downturn, rising inflation, and claims for robotics issues jeopardized the deal. Then Twitter sued Musk, trying to bind him to the original show. Chancery’s Delaware court was then scheduled to hear the entire circus, but Musk appears to be trying to avoid that trial as of today.
The billionaire says buying Twitter is “an acceleration to create X, apply everything”.
Buying Twitter is accelerating the creation of X, applying everything4 October 2022
So why is Musk trying to avoid a court battle and buy back the company? Many weigh things up. Some say this was to avoid a trial he was sure to lose. Others say it is a three-dimensional chess move by musk. Although we’re not likely to know for sure, we do know one thing: We’ve all come back to this for the foreseeable future.