Shares of social networking company Twitter are gradually inching closer to the $54.20 per share that Elon Musk indicated in his buyout deal. The company jumped 0.3 percent yesterday to a nearly seven-month high of $52.94.
Notably, the stock price was the closest it has been since the billionaire indicated his intention to acquire Twitter. Twitter shares are up 1.03 percent at $53.90, a sign that investors are eagerly awaiting the deal to close by Friday. Randy Frederick, managing director of operations and derivatives at the Schwab Center for Financial Research, said investors’ doubts are gradually fading “but are not yet fully resolved.“
The last six months have been marked by back and forth on the operation, both for Elon Musk and Twitter. The company initially opposed the deal by opting for a poison pill, before suing him. The lawsuit came after the Tesla CEO said he was dropping his offer due to unreported spam on the Bluebird app. In the midst of these dramatic events, Twitter dropped as low as $32.50 in July.
Elon Musk to close Twitter deal by Friday
Elon Musk now has until Friday to close his deal with Twitter, according to a Delaware judge’s order. The billionaire has offered to follow through on his initial $44 billion offer, which sent Twitter stock up 24 percent. Musk has already reached out to co-investors who have said they financially support his acquisition plans. Financial services firms like Bank of America Corp and Morgan Stanley have offered him $13 billion in debt financing. Separately, equity investors are also contributing to the cause. They include Saudi Prince Al Waleed bin Talal Al Saud and Oracle co-founder Larry Ellison. These equity investors are offering $7.1 billion.
Jason Benowitz of The Roosevelt Investment Group LLC said:
“Wall Street is motivated to curry favor with Musk. Elon Musk is at the helm of major companies, including Tesla, SpaceX, and soon Twitter…which may require substantial fundraising in the future. If SpaceX were to ever go public, it would be a landmark deal for the investment banking industry.”
As the legal deadline approaches for the Twitter deal, Elon Musk brought a porcelain bathroom sink into the company on Wednesday. He posted a video of him entering the Twitter offices in San Francisco, saying “Entering Twitter HQ – let that sink in!” (Entering Twitter HQ – let that sink in!).
Entering Twitter HQ – let that sink in! pic.twitter.com/D68z4K2wq7
– Elon Musk (@elonmusk) October 26, 2022
Before his visit, he had suggested that he would be there to “meet people, walk the halls, and continue to experience the important work you all do. If you’re in SF and you see him, say hello!“