Elon Musk and Twitter: what are the next chapters of the negotiation?

What is the status of the operation between Musk and Twitter?

In April, Elon Musk proposed to buy the social network at US$54,20 per share. Months later, the billionaire suspended the purchase after Twitter revealed, in a financial statement, that it had inflated the number of users on the platform. The social network opened a lawsuit to force him to honor his commitment, and it seemed like he had a chance of winning in court.

Now, last Monday (3), Musk would have sent a letter to the Twitter returning to the idea of ​​purchasing at the price initially agreed with the company's board. 

"It's a clear sign that Musk recognizes that his chances of beating the (Twitter) board in a Delaware court are very slim, and that the $44 billion purchase will happen one way or another," the analyst said. Dan Ives of Wedbush Securities.

Elon Musk offers US$44 billion to buy Twitter, says newspaper

According to the British newspaper Financial Times, Elon Musk has offered to buy Twitter for the original price of $44 billion, amid one of the most high-profile corporate legal battles in decades.

Why did Musk change his position?

Jurists maintain that Elon Musk he simply realized that he would not win the trial, as he was unable to coherently support his main argument to annul the agreement: the presence greater than that indicated by the social network of fake and automatic accounts on Twitter.

What is Twitter's economic situation at the moment?

The platform's shares rose 22% on Tuesday (4), after Musk's change of opinion was announced – but the company is not at its best. 

Like other giants in the sector, Twitter has suffered from a reduction in advertising spending in a context of a cooling economy, and its image has been affected by the turbulence and uncertainty surrounding Musk's interest in buying it. The group recorded a drop in revenue of 1% in the second quarter.

What would Twitter be like with Musk at the helm?

Elon Musk presents himself as a fervent defender of freedom of expression and has already stated that he intends to let internet users express themselves as they see fit, as long as they do not break the law.

He also said he was in favor of canceling the suspension of the former American president's account Donald Trump on Twitter, decided by the company after the invasion of the Capitol, in January 2021.

(With AFP)