Elon Musk has proposed once time to purchase Twitter for $54.20 an share.
The report that Musk has offered to continue with the $44 billion buyout was initially announced by Bloomberg. The latest filing filed in the Securities and Exchange Commission shows Musk proposed the idea in a letter addressed to the tech company on Monday.
It was reported that the New York Stock Exchange temporarily suspended trading in Twitter stock twice on Tuesday. first due to a significant price change and the second time to coincide with a news event that could be related to Musk’s new offer.
Although the per-share offer price for the current proposal remains the same as the initial proposal, it’s not clear whether Musk has made any other changes , or the possibility that Twitter would not accept it. According to various reports, an agreement could be made in the coming week.
The stock was trading on Tuesday at $52.00/share Tuesday, signalling there is a lack of confidence in an offer of $54.20 offer.
Following the time that Musk told Twitter about plans to end the agreement originally signed on July 1, Twitter sued. A trial is expected to take place in Delaware Chancery Court on Oct. 17.
With the idea of a buyout now on the table this brings up the question of whether Musk might decide to move Twitter out of San Francisco to Central Texas.
He’s done it with a few of his other businesses. Tesla’s headquarters in the southeast region of Travis County had its grand opening earlier in the year. The tunneling company The Boring Company moved to Pflugerville. Two additional Musk firms, SpaceX and Neuralink, have the Central Texas presence without being in the same region.
Journalist for technology Nilay Patel this afternoon voiced worries that having Twitter as well as Tesla together could create problems for Musk because his Tesla manufacturing factories are located in Germany as well as China are both located in countries that have a dispute with Twitter concerning control of content and the censorship process.
Telsa shares dropped following the Twitter news was released and then rebounded to close at $249.44.