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Elon Musk admits overpaying for Twitter but still “excited”

By Nithya Bose in Twitter/X News, posted October 20, 2022

Elon Musk admitted that he is “obviously overpaying” for Twitter.

But the billionaire said he’s nonetheless “excited” to own the social media giant.

The billionaire made the comments during a Tesla earnings call.

Mr Musk said: “Though myself and the other investors are obviously overpaying for Twitter right now, the long-term potential for Twitter is an order of magnitude greater than its current value.”

Musk said this month that he will settle his on-again, off-again affair with Twitter by purchasing the company for $44 billion.

Sources associated with the case said both parties are having talks over the details of the deal.

They have not struck a final agreement ahead of a court deadline on October 28.

If the acquisition isn't done by the end of the month, Twitter's suit against Musk for pulling out will go to trial.

Following Musk's comments on Wednesday, October 19, shares of the social media site rose about 1.5 percent to $52.48 in after-hours trade.

It reflects improved investor confidence that the deal would close at the previously agreed-upon price of $54.20 per share.

Analysts believe Musk will have to sell billions of dollars in Tesla shares to pay the bill for Twitter.

Musk was banned from selling shares in the days leading up to Tesla's earnings report, but he is now permitted to do so.

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On Wednesday's call, he did not say if he would do so.

Musk also stated on the conference call that Tesla had the potential to be valued more than Apple and Saudi Aramco combined.

Some critics on Twitter slammed the audacious prediction as an effort to "pump" the company's value as Musk plans to sell his shares to take over the firm.

Source: New York Post

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