So now after all? There are increasing signs that Elon Musk wants to buy Twitter after all. Apparently, he would rather pay the originally agreed purchase price than risk a costly and unpromising lawsuit against the short news service.
Is everything now starting all over again?
The story surrounding the takeover of Twitter by none other than Tesla CEO Elon Musk now seems to be entering the next round. This may cause confusion for one or the other. After all, just a few weeks ago it looked as if the tech billionaire’s purchase intentions were a thing of the past. It was he himself, for example, who made the failed takeover of the short message service public in July. Although rumors had already circulated in the meantime that Musk might launch his own social network, everything now seems to be completely different. Behind this is a notice from the US Securities and Exchange Commission.
This has informed the public that Elon Musk will now take over Twitter after all. This means that reports from the news portal Bloomberg about the tech visionary backing down have come true. If the purchase is now actually consummated, Twitter should walk away a shining winner. After all, the $44 billion purchase price matches the original offer the short messaging service made to Musk in April. Musk was unable to prevail in his attempt to push the price down due to alleged mass bot activity and fake accounts on Twitter.
Is Elon Musk afraid of a lawsuit?
But how can Musk’s relenting be explained? Does he now have increased interest in Twitter again after all? Probably not. Rather, one can assume that he considers his chances of winning in an upcoming lawsuit to be exceedingly low. The consequence of a lost lawsuit would not only have been that he would have had to buy the social network at the original price of 44 billion US dollars. On top of that, there would have been substantial legal costs. So it almost seems as if he opted for the lesser evil. Since the report from Bloomberg shows that the judge responsible for the process is rather on the side of Twitter, one could understand this move.
Stock market chaos was avoided
The back and forth between Elon Musk and Twitter already caused the social network’s shares to go up and down in the spring and summer. For this reason, this time they reacted promptly. Without further ado, trading in shares of the short message service was suspended. As it now turns out, this step was right and important. After all, the share price rose by a proud 47.93 US dollars just one day after the new takeover hedge was announced. However, it is still a good 6 US dollars below the value in April 2022 when Musk announced that he would buy Twitter.