Fakoyejo OlalekanTwitter share skyrocket by 22.09 per cent on Tuesday after news broke that the world’s richest man, Elon Musk, has reportedly agreed to acquire the social networking site for $44 billion.
Trading activities around Twitter stock showed investors confidence was high towards the firm, as demands for the social media company’s share pushed the stock price to $52 per share from $42.59 it closed trading the previous day.
As a result of the hike in share price, Twitter shareholders went home with N3.16 trillion ($7.2 billion), as the market valuation of the company climbed to $39.79 billion, from $32.55 billion.
The gains recorded at the end of trading comes the same day Bloomberg disclosed that Musk is ready to adhere to the $44 billion acquisition price for Twitter.
Musk had pulled out of the acquisition talk after accusing Twitter of not providing user data he requested for, and also disclosed that the company lied about its fake account being less than five per cent of the over 200 million monetised Daily Active Users (mDAU).
Due to his decision to terminate the deal, Twitter filed a lawsuit to force him to acquire the company for $44 billion, as Musk had hinted that the price be slashed because the percentage of spam accounts is more than Twitter told the public.
Twitter denied his claim of the bot accounts being more than five per cent, and he was sued to prove it in court trial, which will start on October 17, 2022.
Musk’s move to accept the deal at $44 billion is viewed as an attempt by him to prevent a court trial.
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