After several weeks of erratic behavior, Elon Musk is trying to reassure investors. The richest man in the world announced on Wednesday May 25 that he has new direct funding to buy Twitter. Musk is now ready to take $33.5 billion out of his own pocket — and those of investors backing him — lowering the amount borrowed from banks. After the announcement, the action of the bluebird group soared in trading after the close of Wall Street. The title took more than 5%.
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Elon Musk also explains that he is in discussion with several people, including the co-founder and former CEO of Twitter, Jack Dorsey, with a view to rallying them to the project and obtaining their contribution, either in cash or in Twitter shares, which could further reduce the amount borrowed. ” Elon Musk is simply changing the funding structure. This is a step forward, it partly reduces the pressure on the debt side”analyzes expert Dan Ives, from Wedbush, for AFP. “The high stakes poker game continues. The odds of the deal going through are now 50/50, down from 40/60, in our view.”he added.
hot and cold
Since the revelation of Elon Musk’s stake in the capital of Twitter in early April, the group has lived to the rhythm of the many twists and turns of the case. Some analysts believe that the billionaire’s projections are attempts to lower the purchase price. On Tuesday, May 24, the action had fallen to 35.40 dollars, or 35% less than the price officially proposed by the fiery entrepreneur in mid-April and validated, a little later, by the board of directors. A shift interpreted by Wall Street as an illustration of investors’ doubts about the chances of success of this takeover.
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These doubts were fueled by the multi-billionaire himself, who blew hot and cold last week. In particular, he announced that he was suspending the operation because he wanted to ensure “that spam and fake accounts really accounted for less than 5% of the number of users”. Before reiterating its commitment to acquire the social network. Twitter boss Parag Agrawal stepped up to detail the measures taken to fight fake accounts and Elon Musk responded with several messages, including a simple laughing poop emoji.
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Tensions between the management of Twitter and the richest man in the world have multiplied since the beginning of April. The board of directors of the social network had initially tried to prevent the transaction, before bowing. Elon Musk, who has more than 95 million subscribers to his profile, says he wants to make the platform a bastion of freedom of expression, following the vision of the American right, which considers itself censored by social networks.
He thus said he was ready to cancel the exclusion of Donald Trump, whose account was suspended shortly after the invasion of the Capitol on January 8, 2021, by sympathizers who disputed the result of the presidential election.