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The last six months have been an experience of back and forth on the deal for both Elon Musk and Twitter.
Shares of social networking company Twitter (NYSE: TWTR) are gradually moving closer to the $54.20 per share Elon Musk noted in his buyout deal. The company jumped 0.3% yesterday to reach a near seven-month high at $52.94. Notably, the share price was the closest since the billionaire indicated intentions to acquire the social media company. At press time, TWTR is up 1.03% to $53.90, a sign that investors are looking forward to the deal closing by Friday. The managing director of trading & derivatives at Schwab Center for Financial Research, Randy Frederick, said investors’ doubts are gradually wearing off “but not yet completely gone away.”
The last six months have been an experience of back and forth on the deal for both Elon Musk and Twitter. The company initially opposed the deal by opting for a poison pill and later sued him. The legal charges came after the Tesla (NASDAQ: TSLA) CEO said he was abandoning his offer due to unreported spam on the bluebird app. Amid the dramatic events, Twitter declined as low as $32.50 in July.
Elon Musk to Close Twitter Deal By Friday
Elon Musk now has until Friday to conclude his deal with Twitter, according to an order by a Delaware judge. The billionaire proposed to go on with the original $44 billion bid, which sent Twitter shares up 24%. Already, Musk has reached out to co-investors who have declared to financially support his acquisition plans. Financial services companies like Bank of America Corp (NYSE: BAC) and Morgan Stanley (NYSE: MS) have offered him $13 billion in debt financing. Separately, equity investors are also contributing to the cause. They include Saudi Arabian prince Al Waleed bin Talal Al Saud and Oracle (NYSE: ORCL) co-founder Larry Ellison. These equity investors are offering $7.1 billion.
Jason Benowitz of The Roosevelt Investment Group LLC stated:
“Wall Street is motivated to curry favor with Musk. Elon Musk leads significant businesses including Tesla, SpaceX and soon, Twitter… that may require substantial capital raises in the future. If SpaceX were to one day have an initial public offering it would be a flagship deal for the investment banking industry.”
As the court deadline approaches on the Twitter deal, Elon Musk carried a porcelain bathroom sink into the company on Wednesday. He posted a video of him entering Twitter’s San Francisco office, stating “Entering Twitter HQ – let that sink in!”
Before his visit, there were hints that he would be there “meeting with folks, walking the halls, and continuing to live in on the important work you all do. If you’re in SF and see him around, say hi!”