Elon Musk, CEO of Tesla, has decided to proceed with his original offer to purchase Twitter for $44 billion and take the firm private. This arrangement will place Elon Musk in charge of one of the world’s largest media firms, putting an end to months of litigation between Elon Musk and Twitter. following the announcement, Twitter shares rose 22% to $52 per share. Musk had previously committed to buying the company in April but he changed his mind some months later.
Musk and Twitter were scheduled to appear in court on October 17th, with reports that Twitter will try to get an order for Musk to conclude the Twitter deal for $44 billion. According to Reuters, Musk sent a message indicating that he was ready to proceed with the deal on Monday. It’s still unknown why he decided to drop his fight and go ahead with the deal.
According to Musk, he backed out of the transaction after learning that the number of bot accounts (automated users and fake accounts) was more than he was told when he was considering purchasing the company.
Musk’s decision to proceed with the deal will reawaken anxieties among some Twitter users. They believe that political leaders such as Donald Trump, who was banned off the platform in January 2021 for his provocative comments, will be allowed back on. According to sources, Musk intends to transition Twitter from advertising to subscriptions and to incorporate new features like money transfers.
Twitter’s shareholders had already approved the deal earlier in June. Therefore, there is a high chance that the sale will be finalised in the coming weeks.