So after all the hype about buying Twitter, Elon Musk is getting cold feet. To be fair, he's getting cold feet for a reason: his stock has plummeted 25% in just the last month alone since making the bid to take over Twitter.
What that means is that it will take an inordinate amount of more of his stock to secure the loan to do the deal, which is something he desperately doesn't want to do. So now Musk has been struggling to find a way out of the deal.
He came up with this statement on Tuesday:
Well, that didn't go over too well with the Twitter board. They're moving to enforce the deal.
www.cnn.com
And Musk will lose.
This ranks up there with his tweet about "having secured the money to take Tesla private" when in fact he never did. That's what got him into big trouble with the SEC to begin with.
This move will no doubt cost him another fortune. Either he's going to be forced to buy Twitter for $54.20 per share (It's presently only worth $38.32 per share as it, like Tesla's stock, has plummeted 21% in just the last month) or he'll have to pay a huge fee to get out of the deal.
Either way, Musk is screwed.
It couldn't happen to a more deserving asshole.
What that means is that it will take an inordinate amount of more of his stock to secure the loan to do the deal, which is something he desperately doesn't want to do. So now Musk has been struggling to find a way out of the deal.
He came up with this statement on Tuesday:
Well, that didn't go over too well with the Twitter board. They're moving to enforce the deal.
Twitter board says it will 'enforce the merger agreement' despite Elon Musk's latest move
Who wants to own Twitter? Maybe Elon Musk doesn't.
www.cnn.com
Who wants to own Twitter? Maybe Elon Musk doesn't. Sure, maybe he is causing chaos to extract a lower price from the Twitter board, but he just as well may walk away altogether and create a Twitter clone. There is a "60%+ chance from our view Musk ultimately walks from the deal and pays the breakup fee," analyst Dan Ives said Tuesday.
But for now the board is trying to hold him to it. On Tuesday morning, hours after Musk tweeted that "this deal cannot move forward" until his purported spam bot concerns are cleared up, the company filed its proxy statement for Musk's takeover and said it wants to close the deal "as promptly as practicable."
The board, in other words, wants to rid itself of Twitter. I obtained a new statement from the board Tuesday night that read, "The Board and Mr. Musk agreed to a transaction at $54.20 per share. We believe this agreement is in the best interest of all shareholders. We intend to close the transaction and enforce the merger agreement." Key words: "Enforce the merger agreement." Legal action seems likely.
And Musk will lose.
This ranks up there with his tweet about "having secured the money to take Tesla private" when in fact he never did. That's what got him into big trouble with the SEC to begin with.
This move will no doubt cost him another fortune. Either he's going to be forced to buy Twitter for $54.20 per share (It's presently only worth $38.32 per share as it, like Tesla's stock, has plummeted 21% in just the last month) or he'll have to pay a huge fee to get out of the deal.
Either way, Musk is screwed.
It couldn't happen to a more deserving asshole.
