The new filing on Wednesday seems to have quashed speculations that Tesla and SpaceX CEO Elon Musk will back down from his $44 billion acquisition deal with Twitter after the bid was "on hold."
The filing indicated that Musk will be paying an upfront of $33.5 billion to continue his takeover bid for the bird app. The billionaire is also currently in talks with Twitter founder and former CEO Jack Dorsey and other investors to roll their shares over or aid him in financing the deal.
In his letter to investors who are supporting the holding company that Musk is aiming to take Twitter private, he assured that he is committed to completing the deal even though it was on hold due to an impending investigation on the number of bots on Twitter.
However, Dorsey also announced in a shareholder's meeting on Wednesday that he will no longer take part on Twitter's Board of Directors even though the company's sale is not yet finalized.
But the new filing was still a piece of good news for both the app and the billionaire after facing multiple controversies since he announced his takeover bid. As a result, shares of Twitter increased to more than five percent, although Tesla shares decreased by about one percent, as noted by CNBC.
Musk recently lost $10 billion on Wednesday after being mired with allegations of sexual misconduct. On May 19, he also lost $12 billion in a day after tweeting his support for the Republican party and calling Democrats a "party of division and hate."
Twitter and Musk have also not been on good terms lately after the company alleged the billionaire of violating their NDA after claiming a sample size for the number of bots on the social platform.
When Musk first announced his takeover back in April, the shares are only trading below the $54.20 acquisition price, according to CNBC. This means that investors had low confidence that the acquisition deal would push through with the proposed price.
Musk also raised the possibility of buying Twitter at a lower sale price since the company's shares have been falling since he planned to take over.
Read Also : Twitter Settles for $150 Million Over the Use of User Privacy, Elon Musk's Deal Still Moving Forward
Are Twitter and Musk on Good Terms Now?
Back in May, Twitter shares were left under the mercy of Musk's announcement that his deal would be put on hold as he conducts an independent investigation on the number of fake and spam accounts found on the social platform.
Musk said at the All in Summit tech conference in Miami that the acquisition price must be decreased citing concerns about inauthentic activity and accounts present on Twitter.
The recent filing could finally put both parties on good terms and usher in Musk's era on Twitter.
Twitter eventually acknowledged that there is a proportion of "false or spam accounts" on their platforms, including legitimate monetizable daily active usage or users (mDAUs). In its first-quarter earnings report, the company said that the average number of bots was less than 5% of its mDAU during the first quarter of 2022.
On Wednesday, the company's shareholders voted not to re-elect Silver Lake's Egon Durban back to the company's board even though he is a long-time business associate and backer of Musk's several companies.
This article is owned by Tech Times
Written by Joaquin Victor Tacla
