August 18, 2022

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Twitter Jumps After Musk Increases Commitment Offer To $33.5 Billion

Twitter Jumps After Musk Increases Commitment Offer To $33.5 Billion

Elon Musk, during an event at SpaceX headquarters in Hawthorne, California, US, on Thursday, October 10, 2019.

Bloomberg / Getty Images

new Reveals the deposit Elon Musk is planning to give $33.5 billion in his bid to take over Twitter.

Musk is in talks with Twitter founder and former CEO Jack Dorsey and others to help fund or renew their shares to complete the deal. at A letter to investors In support of the holding company that Musk is forming to make Twitter private, the 100 billionaire has expressed his commitment to completing the deal.

Twitter shares rose more than 6% in the news.

As CNBC’s David Faber previously stated, Elon Musk He is expected to serve as interim CEO of Twitter for a few months after he completed the $44 billion acquisition.

The deal has been mired in controversy since Tesla and CEO of SpaceX Proposed for the first time in AprilThe shares are trading below the buyout price of $54.20, indicating that investors have relatively low confidence that the transaction will take place at that price.

Earlier in May, Musk sent Twitter Shares slumped when he said he would put the $44 billion deal on hold as he looks at the percentage of fake accounts and spam on the platform. Musk suggested at the All In Summit tech conference in Miami that his Twitter deal should take place at a lower price, likely given his concerns about activity and non-original accounts on the platform.

in that First Quarter Earnings ReportTwitter has acknowledged the existence of a number of “false or spam accounts” on the social network, along with legitimate daily active use or users (mDAUs). The company wrote in a filing, “We conducted an internal audit of a sample of accounts and estimate that the average fake or spam accounts during the first quarter of 2022 represented less than 5% of our MDAU during that quarter.” Twitter It also admitted that it overestimated user numbers by 1.4 million to 1.9 million over the past three years.

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earlier on Wednesday. Twitter contributors voted not to be re-elected Silver Lake Co-CEO, Egon Durban to the company’s board of directors. Durban, through Silver Lake, is a longtime business partner and supporter of Musk’s businesses and prior business deals.

Tesla shares fell a bit slower after hours on Wednesday.