# Twitter shares cruise towards Musk’s offer price as deal deadline looms
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-10-27
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: Twitter stock nears Musk's buyout offer, deal expected
Meta Description: Will Elon Musk's $54.20 per share buyout of Twitter become a reality? Investors seem convinced as stock inches towards the offer ahead of deadline.
URL: https://financedigest.com/twitter-shares-cruise-towards-musks-offer-price-as-deal-deadline-loomshtml

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By Medha Singh

(Reuters) – Twitter Inc’s stock inched closer to Elon Musk’s $54.20 per share buyout offer for the micro-blogging site on Wednesday, signaling that investors finally expect the deal to go through ahead of a court deadline at the end of this week.

Shares of the social media company were last up 0.3% at a near seven-month high of $52.94, the closest they have come to Musk’s offer since it was announced in mid-April.

Market doubt seems to be waning but has not yet completely gone away,” said Randy Frederick, [managing director](https://www.financedigest.com/anya-libova-joins-apester-as-uk-managing-director.html "Anya Libova joins Apester as UK Managing Director") of trading & derivatives at Schwab Center for Financial Research.

In the six months of dramatic back-and-forth since Musk announced his bid, Twitter initially resisted the deal by adopting a poison pill and [later sued the world’s richest man after he announced plans](https://www.financedigest.com/are-the-over-55s-accessing-their-pensions-early-failing-to-plan-for-later-life.html "Are the over-55s accessing their pensions early failing to plan for later life?") to abandon his offer on concerns about spam accounts on the platform.

Twitter [shares dropped as low](https://www.financedigest.com/credit-suisse-shares-hit-record-low-after-report-bank-is-looking-to-raise-cash.html "Credit Suisse shares hit record low after report bank is looking to raise cash") as $32.50 in July.

Earlier this month, Musk proposed to proceed with his original $44 billion bid, calling for an end to a lawsuit by the social media company that could have forced him to pay up, sending Twitter [shares 24% higher](https://www.financedigest.com/asia-shares-creep-higher-wary-on-fed-and-boj-outlooks.html "Asia shares creep higher, wary on Fed and BOJ outlooks").

Tesla CEO has notified co-investors who committed to help [fund his $44 billion acquisition of Twitter that he plans](https://www.financedigest.com/uk-drops-plan-to-tax-sovereign-wealth-funds.html "UK drops plan to tax sovereign wealth funds") to close his buyout of the social media firm by Friday, a person familiar with the matter told Reuters on Tuesday.

The banks providing $13 billion in financing for the [deal have abandoned plans to sell the debt](https://www.financedigest.com/analysis-no-china-no-deal-bid-to-break-sovereign-debt-logjams-gets-weary-thumbs-up.html "Analysis-No China, no deal: Bid to break sovereign debt logjams gets weary thumbs up") to investors because of uncertainty around Twitter’s fortunes and losses, Reuters reported last week.

[“Wall Street](https://www.financedigest.com/weary-wall-street-cheers-improved-consumer-confidence.html "Weary Wall Street cheers improved consumer confidence") is motivated to curry favor with Musk,” said Jason Benowitz, senior portfolio manager at The Roosevelt Investment Group LLC.

[“Elon Musk](https://www.financedigest.com/elon-musk-and-others-urge-ai-pause-citing-risks-to-society.html "Elon Musk and others urge AI pause, citing ‘risks to society’") leads significant businesses including Tesla, SpaceX, and soon, Twitter … that may require substantial [capital raises](https://www.financedigest.com/shares-in-monte-dei-paschi-plunge-14-after-capital-raise.html "Shares in Monte dei Paschi plunge 14% after capital raise") in the future. If SpaceX were to one day have an initial public offering it would be a flagship [deal for the investment banking](https://www.financedigest.com/seven-out-of-ten-uk-adults-aged-25-44-never-seek-advice-on-dealing-with-debts-despite-depending-on-the-bank-of-mum-and-dad.html "Seven out of ten UK adults aged 25-44 never seek advice on dealing with debts despite depending on the bank of mum and dad") industry.

(Reporting by Medha Singh in Bengaluru; Editing by Saumyadeb Chakrabarty and Vinay Dwivedi)


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