Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Musk Failed to Convince Twitter to Lower the Deal Price - Reports

Published 2022-10-06, 06:00 a/m
Updated 2022-10-06, 06:00 a/m
© Reuters.

© Reuters.

By Senad Karaahmetovic

Elon Musk’s representatives contacted Twitter (NYSE:TWTR) weeks ago and sought a 30% discount on the agreed price of $54.20 per share, the New York Times reported.

Twitter dismissed such a request and subsequent proposals from Musk to cut the deal price by 10%. Ultimately, Musk gave in and committed to completing the deal at the original price, just days before his deposition was supposed to take place. Eventually, Tesla CEO and Twitter agreed to delay Musk’s deposition.

Bloomberg News reported that the two sides could reach a deal at the original price within the next week. The two parties continue to focus on hashing out conditions tied to financing and dropping litigation over the stalled takeover, a report in the WSJ noted.

Some sides previously involved in the deal, such as Apollo Global Management, Inc. (NYSE:APO), reportedly backed out of the deal months ago, as per Reuters.

In the meantime, the judge in the Musk-Twitter trial said yesterday that neither party had moved to stop the litigation.

“The parties have not filed a stipulation to stay this action, nor has any party moved for a stay,” the judge wrote Wednesday. “I, therefore, continue to press on toward our trial set to begin on October 17.”

Some analysts suggested in recent days that Musk may have to sell more Tesla (NASDAQ:TSLA) stock to meet the financing requirements for the Twitter deal. He previously sold $15.4 billion worth of shares of the electric vehicle (EV) maker.

"We see lingering impacts from Musk stock sales as a drag dissipating but the big worry is Musk juggling too many balls at the same time," Wedbush analysts said.

"We continue to believe the deal gets done smoothly despite some late night poker moves from the Twitter camp with the Delaware Court case around the corner," the analysts added.

Shares of Tesla closed 3.5% lower yesterday and are down a further 1% in pre-open Thursday. Twitter stock is down 1.1% to trade below $51 per share.

 
 
 

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.