We will see how long this DWAC price surge lasts. Probably not long with the company under investigation from both prosecutors and the SEC. Trump's 'blank check' social company surges as Elon Musk's Twitter deal collapses: report https://www.rawstory.com/digital-world-acquisition-corp/ On Monday, CNN Business reported that shares of former President Donald Trump's "blank check" company have surged in the wake of reports that tech billionaire Elon Musk is pulling out of his agreement to purchase Twitter and take it private. "Shares of Digital World Acquisition Corp., the special purpose acquisition company that has agreed to merge with Trump Media & Technology Group, surged 15% in premarket trading Monday morning after Elon Musk said he would back out of his deal to buy Twitter (TWTR)," reported Jordan Valinsky. "The surge comes after Musk announced late Friday that he was pulling out of his agreement to buy Twitter, citing the lack of information about the percentage of Twitter accounts that are bots. Musk's lawyer said that placed Twitter 'in material breach of multiple provisions' of the original agreement." This comes as Trump slammed Musk as a "bullsh*t artist" at a rally in Anchorage, Alaska. Musk originally claimed he was purchasing Twitter for the purpose of reforming its policies to reduce censorship and promote "free speech," making him a darling of Trump supporters who have long claimed baselessly that the site suppresses conservative viewpoints — even though, as CEO of Tesla, Musk ironically has a reputation of illegally silencing workers who try to unionize or customers who report problems with their vehicles. In subsequent speeches to Twitter employees, Musk even seemed to endorse the very same policies that conservatives were complaining suppressed free speech in the first place. Some business observers have speculated the real reason Musk wanted to buy Twitter might have been as a way of offloading Tesla shares he feared were overinflated — and that he's backing out not because of "bots" but because after Tesla's latest market losses, he can't actually afford it. Regardless, Musk now faces a lawsuit from Twitter seeking to force him to honor the $44 billion agreement — and even if he prevails, he could be on the hook for a $1 billion termination fee. Trump's "blank check" company — formally known as a special purpose acquisition company, or SPAC — was used to create a competitor to Twitter, known as Truth Social, which likewise bills itself as a friendly space for conservatives "censored" by Twitter. The website has been plagued with technical and leadership problems from the beginning, some investors say they were unaware Trump was even involved in the deal when they signed on, and the CEO of Digital World Acquisition Corp has been hit with a lawsuit alleging the entire deal was a fraud scheme.
There might be bigger ramifications to TWTR here. What if... and I'm just saying 'what if'.... but what if the discovery phase would lead to stones being turned over that show Twitter has been less than transparent in their quarterly filings regarding actual user numbers... long before Elon came along. Now that might give the board something to think twice about before they open this can of worms. Or maybe not. Maybe they have nothing to hide. I was surprised to see that their verified user count is only 155K though. Pfff. That's horrible.
Elon offered the 54.00 knowing that the price was sufficiently high to create a fiduciary and legal obligation on the part of the twitter board to present the offer to the shareholders for their vote/approval. Then he figured he could knock it down somewhat but it would still be sufficiently above market so that there was value there that the shareholders were entitled to vote on. When there is potential value to shareholders the board has obligation even if they did or do hate Elon. And Elon knows that. That is how he set the whole thing in motion. In regard to a 34.20 price though, it gets dicey. There is no juice in that number for the shareholders. If a shareholder thinks that would be a good number for them, they should just sell it into the market today or tomorrow or in some current timeframe before it goes lower. Not sure how you can get shareholders to approve a number that low just yet. "Yet" being the operative word. Markets move. Twitter has to watch out for lawsuits from Elon, but they have watch out for lawsuits from shareholders too.
Could twitter drop to 20.00 without Musk.....then 34.20 is good As more disclosures become available twitter will not be helped
Yes. 20 market price would make 34.20 look good for many unless they are thinking long term. Some of the big or even small players may be hedged with options so that they will just hold the stock but offset the drop down to 20.00 and then wait for the stock to come back up later. Don't know but whatever deal the board presents to shareholders has to show them something that they think looks good.
All that matters is what the piece of paper says that both parties signed. However if Musk does not want twitter anymore, best thing for both parties is to just part ways clean. TESLA shareholders should be happy musk is walking away. Anytime the CEO and main brain behind a company wants to get into another business segment and is distracted by politics and social media, you know the company is going to suffer. CEOs should stay in their lane and avoid polticial bullshit and run their company. twitter is just another mindless social media outlet for self important people to brag about followers.....given the other outlets out there, twitter is no longer hte big dog in the game.... too many politicians, actors, athletes and posers acting like we gie a shit about their 150 character logorrhea.
No way Musk is forced to buy at his original price. No. Fuckin. Way. Who has more to fear during discovery? My bet is Twitter. If he does buy, it will be his choice at a much lower price.