The boss of Tesla and the richest man in the world, Elon Musk, announced Friday, May 13, to suspend the takeover of Twitter pending details on the proportion of fake accounts on the social network. The group’s action immediately plunged about 20% after this announcement in electronic trading before the opening of Wall Street.
The social network announced on April 25 that it had accepted the billionaire’s offer. The latter had made a takeover proposal on April 14, saying he was ready to pay 54.2 dollars (49.7 euros) per Twitter share. It represented a “premium”, that is to say a bonus, of 54% compared to the opening price of the title on January 28, the date on which Mr. Musk began to invest in Twitter. In total, Elon Musk has put 43 billion euros on the table, and claims to have been able to build the corresponding financing plan.
The next day, Twitter announced that it was putting in place a clause, dubbed “poison pill”, supposed to prevent Elon Musk from easily redeeming his shares. Several shareholders, including the fund headed by Saudi Prince Al-Walid Bin Talal Al Saud, one of Twitter’s main shareholders, had deemed Mr. Musk’s offer too weak.
For several days, the possibility of a takeover had seemed to move away – Elon Musk, accustomed to sudden changes in strategy and provocations, had also given up, in mid-April, to sit on the board of directors of the company, of which he had become the main shareholder. At the same time, he had multiplied the criticisms against the company… on Twitter, where he is one of the most followed personalities, with more than 80 million subscribers.
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