Elon Musk reveals reason behind reviving Twitter deal

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Following confirmation that Tesla chief Elon Musk has offered to buy Twitter with his original offer of $44 billion, the tech mogul revealed the reason for his sudden U-turn.

In his first public remarks following since reviving the offer, the 51-year-old billionaire took to Twitter and said that the acquisition of Twitter is an “accelerant to creating X, the everything app.”

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Musk further said that buying the microblogging platform has brought forward his X project by three to five years.

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The inspiration behind creating a super app stems from Musk’s admiration of other similar apps from like China’s WeChat and TikTok that offer more services.

He wants to create X as a super app which will combine messaging, social media, payments-and lack of reliance on ad revenue, similar to WeChat.

Though the Tesla chief executive did not explain further what “X” was and what sort of services it would provide, there is a strong indication that he would pit his project against the rivals like WeChat and TikTok.

Meanwhile, Bloomberg on Tuesday reported that the billionaire was ready to complete the takeover at the original price of $54.20 a share.

The report was confirmed after the filing with the US Securities and Exchange Commission on Tuesday was disclosed.

Moreover, lawyers for Musk on Tuesday sent a letter to Twitter offering to honour the original agreement.

Also read | Twitter confirms Elon Musk buyout offer, says will close at original price

The letter is being reviewed by Twitter lawyers, but reports suggest that the deal has been most likely accepted.

“We received the letter from the Musk parties which they have filed with the SEC,” a spokesperson for Twitter said, reports The Verge.

Also read |  AS IT HAPPENED – Twitter confirms Musk buyout offer 

“The intention of the company is to close the transaction at $54.20 per share”

Earlier on Tuesday, Twitter shares trading was halted as the stock price jumped following reports of reviving the deal. The shares went up by nearly 13 per cent at $47.93 before trading was paused.

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