NYSE Halts Twitter Trading After Report Says Elon Musk Plans to Follow Through With Acquisition – It appears that Elon Musk will proceed with his plan to acquire Twitter (NYSE: TWTR), despite his initial desire to back out due to a lack of information about automated accounts known as bots. The news follows a recent shareholder vote in which Musk was selected by an overwhelming majority.
On Tuesday, October 4, 2022, Bloomberg was the first to announce the news, and after Bloomberg’s report was released, Twitter shares surged, leading the NYSE’s equity markets to halt trade. At the time of publication, Twitter shares are up 12.67% and cost approximately $47.93 per TWTR share.
The Bloomberg report, written by Jef Feely and Ed Hammond, cites sources familiar with the situation and claims that Musk wrote a letter to Twitter. According to CNBC, the newsdesk “independently confirmed Musk’s renewed offer.” The latest deal also follows the commentary between the former Twitter CEO Jack Dorsey and the Tesla executive.
The texts between Dorsey and Musk explain why Dorsey decided to leave Twitter as he stressed that the social media platform should have never become a company. “A new platform is needed. It can’t be a company. This is why I left,” Dorsey wrote. The Twitter founder further added that the social media platform should be “an open source protocol, funded by a foundation of sorts that doesn’t own the protocol, only advances it.”
Additionally, Musk was at odds with Twitter over a lack of transparency regarding the amount of automated accounts on the social media platform. He gave explanations for his decision to cancel the acquisition and stated that he would be walking away from the agreement. The two sides (Musk & Twitter) were set to meet in court on October 17 to discuss the differences and termination before Musk’s latest letter to Twitter stating that he will proceed with the purchase.