Twitter’s stock surged on Tuesday after billionaire Elon Musk proposed to go ahead with his takeover of the social media platform at $54.20 per share.
Twitter jumped over 22 percent to end at $52.00 after a securities filing showed Musk intends to go ahead with his April offer of $44 billion to take Twitter private, signaling an end to a legal battle that could have forced Musk to pay up. Musk is also chief executive of electric car maker Tesla.
Tesla gained 2.9 percent to $249.44, down from an earlier high of $257.50.
Earlier, Twitter’s stock had been halted after a report from Bloomberg News about Musk’s plans.
Over $27 billion worth of Tesla shares were exchanged, the highest turnover for the electric vehicle since mid-August, according to Refinitiv data.
Musk and Twitter were set to enter the courtroom this month, with Twitter seeking an order directing Musk to follow through on his agreement last April to buy the company for the agreed-to price. Musk ripped up the deal in August, saying he was misled about the number of spam accounts on Twitter.
Twitter told regulators on Tuesday that Musk sent a letter saying he will go through the with deal he inked early this year to buy the tech firm for $44 billion.
“The intention of the company is to close the transaction at $54.20 per share,” Twitter said in a tweet confirming the billionaire entrepreneur is apparently abandoning his legal battle to terminate the deal.
Tesla’s stock has been under pressure since Musk agreed to buy Twitter, with investors concerned about how much of the car maker’s shares he might sell to fund the purchase.
The possibility that Musk might follow through on his deal has shielded Twitter’s stock price in recent months from a meltdown in the shares of other social media companies amid a broad Wall Street sell-off over worries about rising interest rates and a weak economy.
With Tuesday’s gains, Twitter is up 20 percent year-to-date, versus a drop of more than 50 percent in Facebook owner Meta Platforms, Alarabiya reports.
See all the news
Tata Power’s CEO Pays Visit to BMG
NEQSOL Holding has won defamation case against Communications Commission
Europe's largest crypto exchange WhiteBIT has partnered with Netflix
Interview with Albert Park, ADB’s Chief Economist - By Elene Kvanchilashvili, Forbes Georgia Executive Editor in Chief
This year, the VIII international literature festival Odesa will be held in Batumi
Georgian Commercial Banks Boost Business loan portfolio for large enterprises
High blueberry exports from Georgia In July
Op-Ed: Gold and Inflation
სებ-ი კრიპტობაზრის რეგულირებას გეგმავს - რა იცის სექტორმა?
#BMGAUTO: #AUTOრემონტი - რა ეტაპზეა ავტომობილი?
Fitch Affirms TBC Leasing at 'BB-'; Outlook Stable
What regime of sanctions applies to Russian oil and what requirements Georgia has to comply?
#საქმიანები: "ყველაფერი გულის შესახებ" - თამაზ შაბურიშვილი
#BMGAUTO: Dodge magnum SRT8 - 6.1 hemi, BMW E46 M3 - CABRIO, AUDI A7 3.0T FSI Quattro S Line
#საქმიანები: მაკა ბატიაშვილის მაქსიმალური მინიმალიზმი
#რედაქტ2: გიორგი ისაკაძის ინტერვიუ სოსო ტყემალაძესთან - პრემიერ-მინისტრის მრჩეველი, რაგბის კავშირის პრეზიდენტი / 16.06.2022
#საქმიანები: "პატარა ბაზარი" - ქართული ბიზნესი ფრანგული შტრიხებით - ქეთევან მესხი
კადრების დეფიციტის და კვალიფიკაციის პრობლემა ტურიზმში
"USA supports Georgian economic by working with American firms to enter to Georgian market" - Degnan visited Batumi Multimodal Terminal
#BMGAUTO: Autoრემონტის პირველი გამარჯვებული - როგორ მივიღოთ მონაწილეობა გათამაშებაში?