Global Economic Outlook (G.E.O)
Musk’s Twitter Takeover in a New Twist. Vol. 107. October 3, 2022.
Dear readers, welcome to another edition of the Global Economic Outlook (G.E.O) - our weekly newsletter providing insights on finance, investment and the economy. In today’s edition, we will be discussing Elon Musk’s sudden change of mind about Twitter again!
***
Musk’s Twitter Takeover in a New Twist
The battle between Elon Musk and Twitter does not seem to be ending anytime soon. After many twists and turns by the world’s richest man, news filtered in this week that he is now ready to go ahead with the $44 billion purchase of the social media company and wants the court to halt proceedings on the case to allow him seek financing to complete the deal.
The court has agreed to halt the proceedings to allow Musk complete the deal by the 28th of October 2022 but Twitter is not in any way moved by Musk’s request and it is easy to see why. The deal was agreed in April and when it looked like it was going to be completed, Musk pulled out citing the number of fake accounts on the platform. Twitter therefore wants more than mere words this time to believe him and are pushing for the court proceedings to go on.
Twitter’s concerns are not only based on the attitude of Musk since the start of negotiations on this deal. The company also believes that Musk is yet to initiate concrete discussions with banks to obtain the debt financing required and is only acting this way to buy more time. Twitter’s concern will surely have a basis. Securing debt financing from the World’s biggest financial institutions might take some time and if serious discussions are not already taking place, the chances are quite slim that the deal can be completed soon.
You might be wondering why Elon Musk decided to change his mind again about the deal. Well, he is yet to state his reasons but it might be that his legal advisers are the ones asking him to go ahead as his chances in court is not great. It is possibly a case of Cost-Benefit Analysis, where going on with the court case will result in more cost than completing the deal itself.
As it is, the cost of completing the deal now will surely be higher than if he had gone ahead earlier. This is because the legal fees he has incurred has significantly increased the cost of the deal and the longer it stays in court, the higher that fee will be. His chances in court are not great either and he might even be forced to pay more to get out of the deal.
Whatever Musk was thinking when he decided to initiate the deal to buy Twitter, we surely do not know but if he now believes the move was a mistake, it is too late as it will certainly be a costly one. Well, he is the World’s richest man and he has deep pockets.
***
The 8th Live Edition of the Global Economic Outlook (G.E.O) was held on Tuesday, 28th June 2022 with experts discussing the state of the Nigerian economy and how Small and Medium Scale Enterprises (SMEs) can navigate the difficult business environment. It is a must watch!
***
If you have any questions or you need help on how to manage your personal finance, please send us an email at info@ecofinar.com.
***
Please share this newsletter if you have found it insightful. The Global Economic Outlook (G.E.O) is a publication of Ecofinar and is a weekly newsletter on finance, investment and the economy. You can access past editions here. Follow us on our Facebook and LinkedIn pages and subscribe to our YouTube Channel.
Contact us:
Ecofinar Financial Solutions
Email: info@ecofinar.com
Telephone: +234 8027957343
Twitter: @ecofinar
Website: www.ecofinar.com
All rights reserved by Ecofinar Financial Solutions