Elon Musk tried to buy Twitter for 30% off the April offer

It has long been thought that Elon Musk’s dispute with Twitter over the number of bots in the daily monetized audience is aimed at negotiating the purchase of social network assets at a lower price than agreed in April. This week, the billionaire announced his willingness to buy Twitter shares at the previous price of $54.20 apiece. Sources say that several weeks before that, attempts were made to bring down the price by up to 30%.

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This publication reported The New York Times with reference to their own channels for obtaining information. Initially, representatives of Elon Musk tried to negotiate with Twitter to reduce the price from $44 to $31 billion, but by the end of September, the requested discount was reduced from 30% to 10%, and it was already about $39.6 billion. The current capitalization of Twitter just exceeded $39, 2 billion at the end of yesterday’s trading, but in the end, Elon Musk was forced to return to the level of $44 billion, from which he started in April.

As you know, Twitter this week received an offer from representatives of Musk to conclude a deal on the terms agreed in April, but both parties have not yet filed a petition with the court to stop preparations for the meeting, which is scheduled for October 17. According to some reports, a new agreement was to be signed this week, but so far the parties are trying to settle some formalities. Among them, a clause is mentioned that frees Elon Musk from the need to buy Twitter if it is impossible to collect the required amount. If the financing terms of the deal, on which it was being prepared since April, have not changed, then Elon Musk will have to find about another $ 3 billion to buy Twitter shares owned by other investors.

Twitter representatives also insist on paying a penalty to Elon Musk for the delay in preparing the deal, which was caused by his July refusal to complete it on the original terms. The company’s lawyers would also like to receive guarantees from the court to control the fulfillment by Elon Musk of his obligations to buy Twitter.

This week, Elon Musk was supposed to testify under oath in the Twitter case, but since he announced his intentions to buy the company, the corresponding hearings may not take place, or will be postponed to a later date. There are no formal reasons for canceling the October 17 trial, Judge Kathaleen McCormick, who is leading the case, explained the day before.

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