Twitter Shares Soar After Elon Musk Makes Fresh Commitment With Acquisition

Twitter Shares Soar After Elon Musk Makes Fresh Commitment With Acquisition

  • Elon Musk will go ahead with his planned acquisition of Twitter, a recent filing reveals and shows that he has set aside $33.5 billion for the deal
  • Report says that Musk is starting a new holdings company that will be in charge of Twitter as he takes the company private
  • The have been doubts if the Tesla CEO would proceed with the deal after he put it on hold pending a user audit

A recent filing shows that Elon Musk would proceed with Twitter acquisition and has set aside about $33.5 billion in his bid to take over the platform.

The billionaire businessman is in talks with Jack Dorsey, Twitter’s former CEO and others to help fund or roll their shares over in order to complete the deal.

Twitter shares, Elon Musk
Elon Musk to proceed with Twitter acquisition
Source: Getty Images

According to a letter to investors backing the holding company that Musk is starting to take over the social media company and make it private, he expressed his commitment to see the deal through.

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Twitter shares jump, Tesla shares fall

CNBC reports that the shares of the microblogging site jumped by 5 per cent hours after the news broke and Tesla saw its shares plummet by 1 per cent.

Reports say that Musk is expected to serve as CEO of Twitter on a temporary basis for a few months after the $44 billion deal is completed.

There has been controversy surrounding the deal since it was first announced in April and the shares of the company have traded below $54.20 which is the acquisition price, showing investors low confidence in the deal.

Doubts over number genuine users of the platform

The shares of the company had plunged earlier in May when the Tesla CEO announced he was putting the deal on hold pending a user audit of the platform.

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Elon Musk’s wealth shrinks below $200 billion amid sexual harassment scandal

The company announced in its first-quarter earnings report that it acknowledged there are a number of fake or spam accounts alongside genuine ones which can be monetized daily. According to the company, it has performed an internal review of a sample of accounts during the first quarter of 2022 and estimates that the average number of fake or spam accounts is about 5 per cent.

Elon Musk’s wealth shrinks below $200 billion amid sexual harassment scandal

Legit.ng has reported that the world’s richest man, Elon Musk has seen his wealth plunge below $200 billion following $10 billion loss as selling pressure piles on Tesla stocks.

Elon Musk was worth about $193 billion after Tuesday, May 24 2022, trading, Bloomberg Billionaire’s Index says.

A regulatory filing of April 2022, shows that Musk owns 16 per cent of Tesla. About 92.9 million Tesla common stocks are included in his net worth, Bloomberg says.

Source: Legit.ng

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