The Elon Musk- Twitter (NYSE: TWTR) saga so far has been the stuff you'd watch with a tub of popcorn, but the latest twist to the story should make you sit up and take notice, whether you're a shareholder in Tesla (NASDAQ: TSLA) , Twitter, or both.
Musk has just accused Twitter of a "material breach" of its obligations under the merger agreement signed on April 25, reminding the social media platform's chief legal officer that Musk retains the right to terminate the agreement. In other words, he has threatened to walk away from his deal with Twitter.
Musk offered to take Twitter private by buying all of its outstanding shares at a price of $54.20 per share, translating into a premium of roughly 38% from Twitter's closing price on April 1, also the last trading day before which he publicly disclosed his 9% stake in Twitter. On April 25, Twitter's board of directors unanimously agreed to the merger and signed an agreement with Musk, with both Twitter and Musk reserving the right to terminate the agreement under certain circumstances.
For further details see:
What Elon Musk's Latest Threat to Twitter Means for Investors