Tesla CEO Elon Musk is preparing to wrap up the acquisition of Twitter after previously trying to back out from the $44 billion deal. The deal is expected to be completed on October 28.However, the famous entrepreneur said that he clearly overpaid for Twitter and that the social network is not worth $44 billion. However, he is confident that under his leadership, the value of the company can exceed even this amount.
We pay more than it’s worth
Musk: “Me and other investors are clearly overpaying for Twitter right now. But I think Twitter’s long-term potential is many times higher than it’s current value.” he said.
According to Musk, Twitter as an asset has “weakened” in recent years, so buying the company for such an amount isn’t exactly in line with its true value.
Following the acquisition, Musk plans to turn Twitter into a private company and all existing shareholders will be paid $54.20 per share. In addition, Elon plans to go through restructuring, laying off 75% of its staff. This equates to about 5,600 of the social network’s 7,500 employees.
Musk was originally going to buy Twitter for $44 billion, but later accused the social network of hiding data and the number of bots on the platform. Then, after analyzing the data, he said that he was not ready to pay such an amount for the social network. Following these statements, Twitter’s shares depreciated, reducing the company’s capital.He sued Twitter and finally gave up
Thereupon, Twitter management accused Musk of deliberately damaging the reputation of the social network in order to devalue the company and buy it cheaper than market price. The social network later filed a lawsuit against Musk, forcing him to buy the social network for the first announced price of $44 billion, demanding that he close the deal.
After the resonance with Musk, Twitter was estimated to be worth less than $32 billion. Musk tried to smash the deal in every possible way, but eventually gave up and said he was ready to buy Twitter at the original price.
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