Twitter Shares Soared as Musk Increased his Personal Stake in the Deal

The CEO of Tesla and SpaceX – Elon Musk – increased his personal financial commitment to the Twitter acquisition to $33.5 billion. The initiative moved the entrepreneur closer to purchasing the social media platform and its shares jumped by over 6% after hours.

Getting Closer to a Deal

Last month, one of the most influential people of our time – Elon Musk – purchased over 70,000,000 Twitter shares (9.2% of the company’s stake). Shortly after, he revealed intentions to buy the social media giant and transform it into a private company. The billionaire argued that Twitter has “extraordinary potential,” and he can help “unlock it.”

At the end of April, the firm accepted Musk’s $44 billion offer to privatize it. However, earlier this month, Tesla’s CEO put the deal on hold due to certain issues that need to be solved before officially shaking hands. He insisted that Twitter removes all fake accounts and does its best against scams that sometimes occur on the platform.

And while both ends have been relatively quiet on the matter in the past few weeks, a new filing disclosed that the deal might be getting closer to a conclusion. Musk increased his personal financial commitment for the acquisition to $33.5 billion while also securing an additional $6.25 billion in equity financing.

Twitter’s stocks reacted positively to the news, spiking by over 6% after hours. Later on, it declined slightly and is currently nearly 4% up from the day before.

It is worth noting that the previous news about Musk-Twitter’s saga affected Dogecoin’s price, too, since the billionaire has often displayed his sympathy towards the memecoin. DOGE soared by more than 25% on the rumors that the agreement has been finalized last month.

However, this was not the case with the most recent update. DOGE is even nearly 6% down compared to its yesterday’s valuation and is trading at $0.08 (at the time of this writing).

Reactions to Musk’s Intentions

Tesla CEO’s decision to purchase Twitter has garnered the attention of many prominent individuals as some of them approved his plan. One of them was Robert Kiyosaki (better known as the author of the financial book “Rich Dad, Poor Dad”).

The American, who has outlined bitcoin as a hedge against inflation, described Musk as a capitalist who can “set our freedom of speech free from the rats, rodents, and reptiles hiding in Twitter’s WOKE Corporate Culture.”

Another person who gave his two cents on the possible Twitter deal was Ethereum’s Co-Founder – Vitalik Buterin. He said he is not against the idea of Musk running the platform, but he disagrees when wealthy people or organizations take over social media firms this way.