Advertisement
Advertisement
Advertisement
Elon Musk can finalize Twitter deal by Oct 28 without lawsuit

Elon Musk can finalize Twitter deal by Oct 28 without lawsuit

Elon Musk can finalize Twitter deal by Oct 28 without lawsuit

Elon Musk can finalize Twitter deal by Oct 28 without lawsuit

Advertisement
  • A Delaware judge halts Twitter’s case against Elon Musk.
  • The delay will allow Musk to fund his $44 billion acquisition of the social media site.
  • Twitter shares increase 1% after hours; they closed down 3.7% earlier in the day.
Advertisement

On the eve of trial, a Delaware court on Thursday halted Twitter’s case against Elon Musk, allowing the businessman time to fund his $44 billion acquisition of the social media site.

The decision ended days of speculation about Musk’s intentions and eliminated the possibility that the volatile businessman would have to appear under oath this week over his allegations that Twitter deceived him.

According to the judge’s ruling, a trial would be set for November if Musk, the richest man in the world, did not settle by the deadline of 5 p.m. EDT on October 28.

In a statement, Twitter said: “We look forward to finalizing the transaction at $54.20 by Oct. 28th.” The corporation urged the judge to reject the suggestion in an earlier court filing, calling Musk’s plan “an invitation to additional mischief and delay.”

Musk, the CEO of electric vehicle manufacturer Tesla, had a trial date of October 17; his deposition on Thursday was postponed by mutual consent.

After hours, Twitter shares increased 1% as investors were relieved following days of uncertainty. Twitter shares ended the day down 3.7% at $49.39. On the condition that the project could get debt financing, Musk stated this week that he would buy Twitter at the $54.20 per share price he agreed to in April.

Advertisement

That represented a turnabout for Musk, who had spent months suing Twitter in an effort to back out of the agreement. Among other things, he asserted that Twitter misrepresented the number of actual users on its site.

In a court filing on Thursday, Musk claimed that although banks were cooperating to finance the acquisition, he still needed more time. He reasoned that a brief holdup was better to the months that a trial and appeal would need.

Twitter had claimed that Musk should have to shut down the next week, and it claimed that a corporate witness for a lending bank testified on Thursday that Musk has not yet provided them a borrowing notice or made clear his intention to close.

As the rapid pace of interest rate hikes has ratcheted up market volatility and decreased desire for leveraged financing, major banks that pledged to fund $12.5 billion, or approximately 28% of the deal, might be facing large losses.

According to Randy Frederick, managing director of trading and derivatives at the Schwab Center, “there’s still some concern depending on whether or not Elon can obtain the actual finance to accomplish the purchase.”

There is conjecture over whether Musk will sell additional shares of the electric vehicle manufacturer’s stock to finance the transaction after he raised $15.4 billion by selling Tesla shares this year and is relying on major investors for a portion of the funding.

Advertisement

“Financing will ultimately be completed, one way or another. Of this point, the only thing left to do is negotiate the terms “Robert Gilliland, managing director at Concenture Wealth Management, stated.

Also Read

Amber Heard “desperately” wanted Depp 2.0 and attempted to wed Elon Musk
Amber Heard “desperately” wanted Depp 2.0 and attempted to wed Elon Musk

Elon Musk, Amber Heard's ex-boyfriend, was not persuaded to become his wife....

Advertisement
Advertisement
Read More News On

Catch all the Sci-Tech News, Breaking News Event and Latest News Updates on The BOL News


Download The BOL News App to get the Daily News Update & Follow us on Google News.


End of Article

Next Story