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Twitter takeover: After a cold period, Elon Musk revives the game of poker

After weeks of erratic behavior, Elon Musk is trying to reassure investors. The world’s richest man announced on Wednesday, May 25, that he has new direct funding to buy Twitter. Musk is now ready to take $33.5 billion out of his own pocket and out of the pocket of his backing investors by reducing bank loans. Following the announcement, shares of the bluebird group soared in trading after the Wall Street close. The title took over 5%.

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Elon Musk also explains that he is in talks with several people, including Twitter co-founder and former CEO Jack Dorsey, to get them involved in the project and get their input either in cash or Twitter shares, which could further reduce the amount of the loan. “Elon Musk is just changing the funding structure. This is a step forward, it partially relieves pressure on the debt side, ”analyst Dan Ives from Wedbush analyzes for AFP. “The high stakes poker game continues. The chances of a deal going through are now 50/50, down from 40/60 in our view,” he added.

hot and cold

Since the disclosure of Elon Musk’s stake in Twitter in early April, the group has lived in the rhythm of many vicissitudes of the case. Some analysts believe that the billionaire’s predictions are attempts to lower the purchase price. On Tuesday, May 24, the stock fell to $35.40, 35% below the price officially proposed by the fiery entrepreneur in mid-April and approved a little later by the board of directors. The shift is interpreted by Wall Street as an illustration of investors’ doubts about the chances of this takeover being successful.

READ ALSO: Twitter: Elon Musk pauses social media takeover and action plummets

These doubts were fueled by the multibillionaire himself, who last week blew one way or the other. In particular, he announced that he was suspending the operation because he wanted to make sure that “spam and fake accounts really make up less than 5% of the number of users.” Before you reiterate your desire to acquire a social network. Twitter boss Parag Agrawal detailed the measures taken to crack down on fake accounts, and Elon Musk responded with several messages, including a simple emoji of a laughing poop.

READ ALSO: Elon Musk wants to buy Twitter… and becomes the new hero of the American right

Tensions between Twitter executives and the world’s richest man have escalated manifold since early April. The social network’s board of directors initially tried to prevent the transaction before giving up. Elon Musk, who has over 95 million followers on his profile, says he wants to make the platform a stronghold for freedom of expression, following the vision of the American right, which sees itself as being censored by social media.

As such, he said he was ready to lift the exclusion of Donald Trump, whose account was suspended shortly after the January 8, 2021 Capitol invasion by sympathizers who disputed the presidential election results.

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