Twitter logs double-digit jump amid report Musk proposes completing deal (updated)
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Updated: Twitter (NYSE:TWTR) is halted for news pending, up by more than 12% on a Bloomberg report that billionaire Elon Musk has sent a letter to the company proposing to proceed with his $44B buyout deal at the agreed price.
That price was $54.20, and Twitter's stock price jumped to $45.40 per share before a volatility halt. It moved to $47.96 per share before a halt for news.
Tesla stock (NASDAQ:TSLA) quickly pared some heavy gains. It's generally expected that Musk would need to sell his holdings fairly heavily to complete his personal financing of the Twitter deal.
Updated 12:11 p.m.: Twitter has resumed trading and is now up 17.3% to $49.91.
Updated 12:28 p.m.: Twitter is halted again, this time for news pending.
Updated 12:37 p.m.: "This is a clear sign that Musk recognized heading into Delaware Court that the chances of winning vs. Twitter board was highly unlikely and this $44 billion deal was going to be completed one way or another," Wedbush's Dan Ives says in reaction to the reports.
"We see minimal regulatory risk in this deal although now Musk owning the Twitter platform will cause a firestorm of worries and questions looking ahead among users and the Beltway. This is a smart move for Musk to go ahead with the deal given the legal hurdles that were ahead into Delaware," Ives continues.
An emergency court hearing on the matter is expected as soon as Tuesday afternoon, the Financial Times
says.
In any case, Twitter's (TWTR) not likely to make a move for another day. A Washington Post source says that distrust on both sides has Twitter leadership questioning whether the new move is just a legal maneuver.
The move to finally go through with the deal could avert a high-stakes trial set to begin Oct. 17 - not to mention Musk's own deposition in the case, currently set to begin on Thursday.