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Elon Musk’s deposition postponed again in Twitter buyout deal

Elon Musk’s deposition postponed again in Twitter buyout deal

American social media firm, Twitter, and billionaire, Elon Musk, and have reportedly agreed on postponing Musk’s deposition, which was set for 6-7th October, as the two try and reach an agreement on their ongoing dispute and bring the $44 billion buyout deal of the company by the Tesla CEO to an end.

Earlier last week, the deposition of both Musk and Parag Agrawal, Twitter CEO, was postponed for this week, after Musk attempted to retract his takeover offer in July, which led to Twitter suing him to complete the acquisition.

However, Musk took a U-turn earlier this week, just two weeks before the scheduled start of trial, 17th October, and offered to continue with the original buyout at the initial price value of $54.20 per share.

According to New York Times, weeks before the SpaceX founder declared that his offer to buy Twitter was up for discussions again, his representatives spoke with the microblogging company several times to renegotiate the deal at a lower price.

Musk sought as much as a 30% discount, which would have valued the company at around $31 billion, but Twitter refused the proposal.

The discussions then continued, and the discount was lowered to around 10%, valuing the deal at around $39.6 billion. However, those talks also did not work out, with Twitter’s market value hitting $39.2 billion earlier on Wednesday, 5th October.

It is expected that Musk will have a rather difficult time trying to close the deal after having made the company as well as its executives suffer on social media and in the courtroom in the past couple of months.

There are especially more hurdles now after Sixth Street Partners and Apollo Global Management Inc, which were set to finance the $44 billion deal, have backed out. They were set to commit more than $1 billion for the deal.

Experts claims that Musk’s U-turn on Twitter-buyout has come at the worst time possible for banks who were set to fund a major part of the deal, as they could face substantial losses amid an unfavorable financing environment.

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Meghna Singh

An English Literature graduate, Meghna Singh ventured into the profession of content development to incorporate her knack for writing articles across verticals including technology, healthcare, business, and alike for News Origins and Newsorigins. She has also completed her MBA in Tourism and worked as a content creator in the field of product development.