Musk Proposes to Buy Twitter for Original Price of $44B, TWTR Shares Jump 22%
- Elon Musk has proposed to purchase Twitter at $54.20 per share, with the social media giant having approximately 765 million outstanding shares.
- Most Web3 platforms use Twitter to make official announcements and keep their communities well-informed.
- Speculations are that Musk will make Dogecoin a form of payment on the Twitter platform.
After months of court cases, Elon Musk has reportedly drafted a proposal to acquire Twitter Inc. (NYSE: TWTR) at the original price of $44 billion. According to a report by media outlet Bloomberg, Musk and his legal team filed a purchase proposal after ongoing court cases showed no signs of favouring them in the end. Moreover, an acquisition proposal will end the ongoing court battle cases in less than a month.
Notably, Musk previously halted Twitter acquisitions following reports of more than reported bots. Nevertheless, the tech billionaire has shown great interest in purchasing Twitter and making it a Web3 space.
Following the announcement by Bloomberg, Twitter shares gained as much as 22 per cent on Tuesday to trade at around $47.93 at publication time.
Musk has reportedly proposed purchasing Twitter at $54.20 per share, with the social media giant having approximately 765 million outstanding shares.
Twitter and the Web3 Development
According to market data from MarketWatch, Twitter has a market capitalisation of approximately $32.55 billion. Despite the stock market and crypto industry shrinking in the past year, Twitter shares have gained approximately 10 and 24 per cent YTD and one month, respectively.
Most Web3 platforms use Twitter to make official announcements and keep their communities well-informed. Furthermore, the social media giant has a global reach and is now likely to be purchased by one of the most wealthy tech entrepreneurs.
“Twitter is probably going to say, ‘look, we definitely want to engage you on this … But we’ve still got a trial on Oct 17 and until this is signed, sealed and delivered, we’ve got to get ready for trial,” noted Columbia Law School professor Eric Talley.
Speculations are that Musk will make Dogecoin a form of payment on the Twitter platform. Furthermore, the social media giant company has many customers using Web3 and blockchain technology. Hereby giving hopes to the Meme coin leader, Dogecoin, of possible future global utility.
Twitter and blockchain technology have intertwined in the past following a receptive leadership by Jack Dorsey. Late last year, the company launched a cryptocurrency team to explore the use cases of blockchain technology.
Last year, Dorsey sold his first tweet as a non-fungible token (NFT) worth approximately $2.9 million.
The decentralised blockchain technology has been a significant development in the last decade. Post-Covid pandemic, most global businesses are scaling using blockchain technology in conjunction with the cryptocurrency market.
Returning Twitter to a privately held company has been described as the best way to save the platform from global government influence. Nonetheless, the deal may head south due to Musk’s unpredictable moves.