Elon Musk Twitter News: Twitter and Tesla stocks may remain in focus of investors for quite some time now. Tesla’s Elon Musk appears to be keen on acquiring Twitter, a global social media platform, completely.
As per US SEC Filings, Elon Musk delivered a non-binding proposal to Twitter in order to acquire all of the outstanding Common Stock for all cash consideration valuing the Common Stock at $54.20 per share. The deal is valued at about $43 billion while the current market capitalization of Twitter is about $ 35.61 billion.
“Elon’s move is typical of the man, but is quite the surprise. There are many that think Twitter has never really lived up to its potential, lagging behind other social networks. But this move also questions Elon’s focus on Tesla. With so many firms launching their own electric cars now is not the time for the man that made e-cars viable to shift his focus. Further rises depend on whether the move ignites a bidding war, and for now, there hasn’t really been anyone else seriously in the frame. If the board comes back and directly rejects the bid then the price might drop,” says Chris Beauchamp, Chief Market Analyst from IG, a UK based trading platform.
Twitter (TWTR) stock was up 6.85 per cent in premarket trading Thursday while Tesla (TSLA) shares fell 2.25 per cent. Currently, Twitter is trading at around $49 and is down by over 34 per cent in the last 1-year period.
The latest offer price is at a 54 per cent premium over the closing price of Twitter share as on January 28, 2022, the trading day before Elon Musk began investing in Twitter stock, and a 38 per cent premium over the closing price of the Common Stock on April 1, 2022, the trading day before Elon Musk’s investment in Twitter was publicly announced. Elon Musk has engaged Morgan Stanley as its financial advisor.
Earlier, on April 4, Musk, who also controls Tesla Inc., first disclosed a stake of about 9 per cent in Twitter. Elon Musk is currently worth about $260 billion, compared with Twitter’s market valuation of about $35 billion.