Twitter soars after Musk increases commitment to $33.5 billion in a takeover bid

A new documentary reveals that Elon Musk plans to bid $33.5 billion for his bid to take over Twitter.

Musk is in talks with Twitter founder also former CEO Jack Dorsey and others to help fund or transfer their stake to complete the deal. In a letter to investors backing the parent company Musk set up to take Twitter private, the chief executive of Tesla and SpaceX said he was determined to close the deal.

Twitter soars shares are up more than 5% after hours of the news, while Tesla shares are down about 1%.

Twitter soars As previously announced by David Faber, Elon Musk will serve. As Twitter’s interim CEO for several months after the $44 billion acquisition is complete.

The deal has been embroiled in controversy since Musk first offered it in April. And its stock is trading below $54.20, suggesting that investors have relatively little confidence that the deal will close at that price.

In early May, Musk rocked Twitter shares when he said he would delay a $44 billion deal while investigating fake accounts and spam cases on the platform. However, musk suggested at the All In Summit in Miami that his Twitter deal should be at a lower cost. Possibly because of concerns about inauthentic platform activity and accounts.

In its first-quarter earnings report, Twitter acknowledged several “fake or spam accounts” on the social network. Along with monetized daily active users or users (MDA). The company wrote in the file: “We conducted an internal review of a sample of accounts and estimated. That the average fake or spam account value in Q1 2022 was less than 5% of our mDAU per quarter.

Twitter also admits to overestimating its user count by 1.4 million. To 1.9 million over the last three years.

Previously on Wednesday. Twitter shareholders voted not to re-elect Silver Lake CEO Egon Durban to the company’s board of directors. Durban, through Silver Lake, is a long-time business partner and backer of Musk’s company and previous deals.