You likely thought the deal was sealed some time ago, but not quite. Tuesday Twitter’s board unanimously approved Elon Musk’s $44 billion offer and filed their approval with the SEC.
Likely due to the current uncertain future of Twitter, stocks are selling for significantly lower than Elon Musk will be paying. Currently, each share costs $38, though Musk will have to cough up $54.20. When the offer was made, the price per share was significantly higher than its current position.
Elon has put the deal on hold. He’s made note that the prices are not the issue. The billionaire is more concerned with whether or not the platform is flooded with bots rather than real users.
He is currently investigating the situation and has threatened to cancel the deal if Twitter cannot prove with 100% certainty that less than 5% of its daily user base consists of bots.
The New York Post reported, In recent statements, Musk said that he estimated that as much as 20% of Twitter’s 229 million users are spambots – four times the figure touted by the company.
At the current price, if the deal were to be finalized each shareholder would be able to make $15.22 for every single share they own. This may not seem like a lot, but some shareholders possess hundreds of shares. These people will profit the most.