Twitter vs. Elon Musk: Is Elon Musk Buying Twitter?
It seems the whole saga between Elon Musk and Twitter is finally ending.
On October 4, 2022, Elon Musk’s lawyers sent a letter to Twitter through the Security and Exchange Commission, indicating interest in moving forward with the deal at the initial bid of $44 billion.
“We write to notify you that the Musk Parties intend to proceed to closing of the transaction contemplated by the April 25, 2022 Merger Agreement, on the terms and subject to the conditions set forth therein,”
“We received the letter from the Musk parties, which they have filed with the SEC,” Twitter disclosed to TechCrunch in a statement.
What Was The Saga Earlier?
Before now, Musk and Twitter were in court over the allegations of Tesla and SpaceX chief executive to Twitter after declaring his intentions to buy Twitter.
Musk alleged that 20% of Twitter’s user base was made of bots without evidence.
So Is Elon Musk Really Buying Twitter?
The letter shows Elon Musk holds an olive palm and may buy Twitter in no distant time, provided the lawsuit does not continue.
“Provided that the Delaware Chancery Court enter an immediate stay of the action, Twitter vs. Musk, et al., and adjourn the trial and all other proceedings.”
Also, Twitter went on to say that it intends to raise each share to $54.20.
“The intention of the Company is to close the transaction at $54.20 per share,” the company added in its statement to TechCrunch.
What Are The Challenges?
“The deal will solve some of the short-term uncertainty at the company, but Twitter is essentially in the same place it was in April,” Jasmine Enberg, an analyst with Insider Intelligence, disclosed to Associated Press.
“There is still plenty of uncertainty around what Musk intends to do with Twitter, as well as the future of a company with a leader who has wavered in his commitment to buying it,” Enberg said.
“And if we’ve learned anything from this saga, it’s that Musk is unpredictable and that it isn’t over yet,” he added.
Moreover, Twitter has a low user base compared to Facebook and Tiktok.
“For Musk, the irony is the easy part of this deal was buying Twitter; the hard part will be fixing it with monetization and subscriber engagement,” said Dan Ives, an analyst in Wedbush Securities, in a research note.
How Does Twitter Aid In Musk’s Vision?
“Buying Twitter is an accelerant to creating X, the everything app,”
Elon Musk tweeted on Tuesday, after his representative sent the letter, that the acquisition of Twitter will help in his vision of building the X app. An app that includes messaging, video, payments, and commerce, just like China’s WeChat.
“It’s a pretty grand vision,” Musk stated in Tesla’s meeting held in August.
“Obviously, that could be started from scratch,” he said, “but I think Twitter would help accelerate that by three to five years. So it’s kind of like something I’ve thought would be quite useful for a long time. I know what to do. Don’t have to have Twitter for that, but, like I said, it’s probably at least a three-year accelerant, and I think it’s something that will be very useful to the world.”
Provided the lawsuit does not proceed, Elon Musk would likely take over Twitter in a matter of days.