American businessman Elon Musk returned to trigger confusion on Twitter. All that was needed was a message published around 11 a.m. (in mainland Portugal) stating that the purchase of this network was suspended so that Twitter shares would go up sharply before the New York Stock Exchange opened. The message became global news of the contract’s suspension, which is why Musk returned to Twitter to clarify the matter. another message: “I remain committed to the acquisition.”
In the first post, Musk wrote that he put the company down “on hold“ [em espera] until you know how many fake accounts there are in the end. In a previous report, Twitter acknowledged that it had increased the number of active users over the past three years. And it showed that less than 5% of the accounts would be false or writers spam (unsolicited commercial messages).
The businessman offered 41 billion euros via Twitter. The message quickly spread throughout the world in the press, suggesting that the agreement was pending. However, no formal confirmation of this scenario has been received so far. Vice versa. Musk himself ended up correcting himself with another message, assuring him that he was still committed to the company. But the damage happened: Twitter shares “melted” (and then recovered). These are favorable effects for Musk: Twitter, which he wants to buy, fell more than 17% in trading before the Wall Street stock market opened up; and Tesla (which he already owns and whose shares he wants to pledge as a bank loan) rose 5%.
Following the opening of the New York Stock Exchange, Twitter fell nearly 11% (around 3 p.m. in mainland Portugal). Tesla, on the other hand, maintained its upward trend at around 5 percent.
at site There is no record of a possible suspension from the U.S. stock exchange regulator, the SEC. It has to wait and see if it’s official communication or, as happened in August 2018, it’s just Musk nonsense that has serious consequences for market behavior.
On August 7 that year, an entrepreneur wrote that he would consider delisting Tesla. In the following hours, the company’s shares rose sharply. One and a half months later, the SEC sued Musk for fraud, accusing him of having come up with an agreement he did not intend to enter into, and thus of influencing market behavior. Three days later, Musk reached an agreement with the SEC to avoid litigation: in return for filing a complaint, he accepted a $ 20 million fine; he was forced to resign as chairman of the board (although he vacated the position of executive director); and accepted that all communications that may have a financial impact on Tesla must be approved by lawyers in advance.
In the light of this past, we look forward to the further development of this case. Purchasing Twitter will not be stopped a Tweet. Official information is required. Reuters contacted, none of the parties have so far issued a statement. In the stock market, however, shocks continue.
The last Twitter-related document filed with the SEC is two days behind. It concerns the Prince of Saudi Arabia, who agreed to divest his shares in a controlled acquisition Elon Musk.
Musk was not forbidden to tweet about a possible purchase of this network, but he had a limited number of publications. This ordered an advance agreement to be submitted to the SEC at the end of April. Musk should refrain from criticizing Twitter’s current management team or posting messages that have material and financial implications for Twitter. That is exactly what he achieved today, in a simple way Tweet. What do SEC and Twitter owners and executives still understand?
The same contract stipulates that the transaction must be made within six months of the first offer, ie by 24 October. Since then, Musk has sold nearly $ 9 billion worth of Tesla shares and received substantial support from friends and other investors. Everything seemed to be on the right track until this message from Musk, an intention that raises doubts until now.
The agreement also includes a $ 1 billion exemption clause. If Musk doesn’t raise money or turn his back on it unjustly, he has to pay the amount to Twitter. If the network owners instead give up the business or start trading with other investors, they will have to pay the same amount to Musk. In this context, it becomes even clearer that a Tweet suspend business. But only one Tweet to see the stock spin.
News modified at 1:05 pm: the first unsigned news was completely replaced by this author.