Elon Musk, Twitter Advisers Preparing Paperwork To Complete Acquisition By End Of October: Report
On Wednesday, Tesla boss Elon Musk said he was “excited about the Twitter situation” during an earnings call. The billionaire called the social media company an asset with “incredible potential” that “has languished for a long time.” The court has given until October 28 to complete the deal.
October 23, 2022: New Delhi: The world’s richest person, Elon Musk, and Twitter have until October 28 to work out the details of the proposed $44 billion deal or there will be a trial in November.
In light of this deadline, advisers from the social media platform and Musk are hard at work trying to close the deal before the end of the month.
Lawyers and bankers for both sides are busy preparing paperwork for the acquisition deal to be completed before a court-issued deadline of Oct. 28, according to people familiar with the matter cited by Bloomberg.
Musk, who made his initial $44 billion offer in April to buy Twitter, called it off in July only to bid for the social networking site again earlier this month.
On July 8, the SpaceX co-founder said he wanted to back out of the deal and blamed management for not sharing the actual number of “bots” or fake users on the social media platform.
Talks between the two sides have become cordial and cooperative after months of public criticism and accusations.
Musk and Twitter are now focused on closing the transaction rather than litigating, Bloomberg reported citing one of the people mentioned above.
The Wall Street banks involved, led by Morgan Stanley, are also fine-tuning steps to finalize financing for some $13 billion in debt commitments.
One of the banks has told its staff to expect a loan notice from Musk on Tuesday, according to another person familiar with the development.
On Wednesday, the Tesla boss said he was “excited about the Twitter situation” during an earnings call. The billionaire called the social media company an asset with “incredible potential” that “has languished for a long time.”
Job cuts on Twitter
Meanwhile, the richest man plans to lay off most of Twitter’s workforce when he becomes the owner of the social media company, according to a report by The Washington Post.
Musk has told potential investors in his Twitter purchase that he plans to cut nearly 75 percent of Twitter’s 7,500-strong employee base, leaving the company with a skeleton crew.
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