On Tuesday, Twitter seemed to accelerate Elon Musks’ purchase of the company, freezing the employee’s equity awards accounts to indicate Musk will hold control of the social media platform in a week.
“Twitter Inc. froze the equity awards accounts for employees on Monday as the deadline to seal a deal with Elon Musk approaches,” Bloomberg Law reported.
“The social media company updated its employee FAQ page this week to alert staff that they won’t be able to access or trade shares from the Equity Award Center. The page said the change was done ‘in anticipation of the closing of the pending acquisition of Twitter by an entity controlled by Elon Musk,’ according to two people familiar with the change. This freeze allows Schwab to perform the final reconciliation of employee accounts.”
Musk has since backed up these indications. During a quarterly Tesla earnings call, Musk addressed the purchase, even admitting the $44 billion acquisition was an overpay.
After much back and forth between the two sides and many losing hope that the Tesla founder would deliver on his promise to run the platform the deal seemed to be all but finalized.
“Although obviously, myself and the other investors are obviously overpaying for Twitter right.
“Now, the long-term potential for Twitter in my view is an order of magnitude greater than its current value,” Musk said.
Elon first agreed to the price of the company at $54.20/share which sunk to $32.40/share after Musk first withdrew from the purchase. The value of the stock in the 3 months since has averaged at $39/share but this week as Musk begins to take over the stock has risen to $52.44/share.
This price per share that Twitter currently sits at is the highest it has been at in almost a full year, still failing to reach the evaluation Musk’s purchase has it at.
Musk reportedly must continue to sell Tesla shares to get the cash for the purchase because although he is the richest man in the world, he doesn’t have $240 billion in net worth beneath his mattress.
During that same conference, Musk was asked if he would consider putting all his companies under one umbrella to which he responded, “I am not Warren Buffett. I am not an investor. I am an engineer and manufacturing person and technologist. I actually work and design and develop products. We are not going to have a portfolio of investments or whatever. I don’t see an obvious window where they could get combined. At least now.”
Want the latest in breaking news and insider information on America? Click Here
Follow Raging Americans on Twitter, Facebook and Instagram.