Twitter’s Shares Dropped on Friday After Musk Said his Bid was Temporarily on Hold
The disparity between Musk’s buyout price and market value, a gauge for whether the transaction will close, expanded to a new high of almost $16 on Monday.
Twitter’s shares dropped on Friday after Musk said his bid was “temporarily on hold,” while he insisted that he was “still committed” to the purchase.
Elon Musk has Put the $44 Billion Twitter Deal on Hold for the Time Being
Elon Musk announced on Friday that his $44 billion purchase of Twitter Inc was temporarily halted owing to awaiting information on spam and fake accounts.
“Twitter deal on hold temporarily seeking information supporting calculation that spam/fake accounts do constitute less than 5% of users,” Musk tweeted.
What Was the Deal?
Elon Musk made a bid to acquire Twitter for $43 billion on April 14. Musk stated, “I propose to acquire 100% ownership for $54.20 per share, a 54 percent premium to the cost the day before I began investing in Twitter.” This is my best and final offer, and if it is not accepted, I will be forced to reevaluate my position as a shareholder. Musk has 9.2 percent of Twitter. It was announced on April 4th.
Musk’s first bid was $43 billion, but since Twitter’s transaction was authorized on Monday, that sum has risen to $44 billion. It is unknown how the figure increased.
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