US DoJ Launches Incoherent Legal Challenge Of AT T Time Warner Acquisition
On April 23, Musk informed Taylor that his offer was "best and final", urging him to accept in a letter sent the following day. Multiple outlets subsequently reported that Twitter was in final negotiations to accept Musk's offer, with a deal expected to be reached by the next day, though Reuters cautioned that the deal could still fall apart. On April 25, Twitter shares rose by 5 percent following reports that Twitter was poised to accept Musk's offer. Twitter advisors Goldman Sachs and JPMorgan Chase both approved of the deal, deeming it fair from a financial perspective. Twitter's board publicly and unanimously accepted the buyout offer for $44 billion, and Twitter was to become a private company once the transaction was completed sometime in 2022. Negotiations with Musk were led by the board's transaction committee, composed of Taylor, Martha Lane Fox, and Patrick Pichette. The deal would require shareholder and regulatory approval before it could be finalized, though analysts believed it was unlikely to be challenged by regulators. Musk was barred from disparaging the company or its employees when tweeting about the acquisition before the transaction closed. The agreement also stipulated that if Musk failed to close the acquisition, he would be required to pay Twitter a $1 billion breakup fee. Agrawal was set to receive $39 million from the buyout, while Dorsey would receive $978 million. Musk had privately selected a new CEO to replace Agrawal upon completion of the acquisition, though he was expected to serve as interim CEO in the months after its completion. Tesla's stock sank by more than $125 billion the next market day, causing Musk to lose about $30 billion of his net worth.
US DoJ launches incoherent legal challenge of AT T Time Warner acquisition