Twitter Says Musk Deal Not ‘On-Hold’, Won’t Renegotiate Price
2022.05.19 20:57
Twitter (TWTR) Says Musk Deal Not ‘On-Hold’, Won’t Renegotiate Price
Twitter (NYSE:TWTR) stocks saw a brief bounce mid-day after executives told staff in an all-hands meeting that the deal with Elon Musk is proceeding as expected, according to headlines from Bloomberg News.
The executives added that there was no such thing as the deal being on “hold,” as Musk had suggested when looking for more diligence on the spam bot problem.
Further, employees were told that the company would not renegotiate the $54.20 per share deal price with Mr. Musk.
Shares of Twitter are trading with a nearly 50% spread to the deal price, suggesting the market does not see the deal happening at all.
Musk, for his part, has lined up financing for the deal with debt and equity partners. He even shored up the portion of the loan that called for some of his Tesla (NASDAQ:TSLA) stock to be used as collateral by removing that part.
The break-up fee on the merger is $1 billion.
