Following Elon Musk’s purchase of Twitter for approximately $44 billion ($54.20 per share), a lot has happened between the micro-blogging giant and the billionaire over the past few weeks. Recently, Musk said that the Twitter deal is currently temporarily on hold due to the number of spam and fake accounts on the social platform. Now, amidst the falling stock prices of the social platform, Musk might try to strike a deal with Twitter at a lower price than his original proposal. Check out the details right below.
Elon Musk Could Strike a Deal with Twitter at a Lower Price
During a recent tech conference in Miami, Elon Musk said that striking a deal for Twitter at a lower price was “not out of the question,” as per a recent report by The New York Times. The response from Musk was to a question from an attendee about whether he would renegotiate his planned $44 billion acquisition of Twitter over the number of bot or spam accounts on the social platform.
Now, it is also worth mentioning that since the Elon-acquiring-Twitter news broke out, Twitter’s share price has fallen quite a lot in the market. This was further impacted when Musk revealed that the deal has been held up. Currently, the company’s share price remains at $35.39/share, which is significantly lower than Musk’s proposal of $54.20/share. Hence, it would be interesting to see Elon’s next move in this initiative, now that the deal is on hold.
For those who don’t know, following Musk’s tweet, Twitter CEO Parag Agarwal posted a lengthy tweet talking about the spam accounts and their treatment on Twitter.
There is also a chance that this deal might be called off to save Twitter from becoming a privatized company. However, Musk says that he is “committed” to the deal. Furthermore, renegotiation will not be easy for Musk as the deal includes a “specific performance clause” that gives Twitter the right to sue Musk and force him to complete the deal as long as the debt financing he gathered remains intact.
So, as you can imagine, the Twitter and Elon deal is currently at a very interesting stage. Now, only time would tell whether or not the deal would go through and make Elon the sole owner of the social media giant. So stay tuned for further updates, and let us know your thoughts on this development in the comments below.