Elon Musk, world richest person waived an offer to buy twitter on April 25 this year. The deal worth $44billion cash, that was $54.20 per share acquisition price.
On May 13, Elon tweeted that the deal is “temporarily on hold” while he waits for the Twitter Inc. company to provide data on the proportion of its fake accounts.
TimesLIVE reported that Twitter shares initially fell more than 20% in premarket trading, but after Musk, the CEO of electric car market Tesla Inc, sent a second tweet saying he remained committed to the deal, they regained some ground.
The shares were down 9.6% to $40.71 in trading on Friday, a steep discount to the $54.20 per share acquisition price.
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Musk, the world’s richest person, decided to waive due diligence when he agreed to buy Twitter on April 25, in an effort to get the San Francisco-based company to accept his “best and final offer.” This could make it harder for him to argue that Twitter somehow misled him.
Since Musk inked his deal to acquire Twitter, technology stocks have plunged amid investor concerns over inflation and a potential economic slowdown.
The spread between the offer price and the value of Twitter shares had widened in recent days, implying less than a 50% chance of completion, as investors speculated that the downturn would prompt Musk to walk away or seek a lower price.