Elon Musk proposes to buy Twitter again and end legal fight
The Twitter-Elon Musk saga continues. While the on-and-off purchase of the social media platform had most people on the edge of their seats, the Tesla CEO came back to his original plan of acquiring the company after all.
On Tuesday, he once again offered to buy the company at his initial price offer of $44 billion. Although Musk didn’t make the announcement via Twitter which is his accustomed way of dropping clues and huge announcements, he confirmed his proposal through a letter sent to Twitter.
The social media company disclosed the details in a filing at US SEC on Tuesday. Elon Musk’s proposal came two weeks before the trial between the two parties began. After reading the letter, Twitter is willing to close the deal at $54.20 per share.
JUST IN: Elon Musk has agreed to go ahead with his $44B Twitter deal‼️👀 pic.twitter.com/mxrF10gnBMFEATURED STORIES
— RapTV (@Rap) October 4, 2022
However, the company didn’t confirm it would be dropping its charges against the billionaire CEO. Experts agreed Twitter is rightful in that move, given the trust issue between the two parties.
A Brooklyn Law School professor Andrew Jennings said, “I don’t think Twitter will give up its trial date on just Musk’s word — it’s going to need more certainty about closing.”He also noted that Twitter might be concerned it was just Musk’s strategy of delaying the upcoming trial. It’s for a fact that Musk had already made it possible to postpone the trial twice.
In April, Musk already agreed to purchase Twitter for an agreed amount. However, he tried to get out of the deal when the company’s market value fell, which brought Twitter suing Musk so the latter could abide by their agreement.
It now depends on Twitter if they accept Elon Musk’s renewed proposal. Their other option is to force the Tesla CEO to continue the trial to close the deal. In addition, Musk’s legal team clarified in the letter that the offer only stands if Twitter stops the lawsuit.
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However, a Twitter spokesperson never gave a clue on their next move. They said, “We received the letter from the Musk parties, which they have filed with the SEC. The Company intends to close the transaction at $54.20 per share.”
Elon Musk’s move
He has been on swift changes in the tumultuous months following Musk’s offer to Twitter. He became Twitter’s largest shareholder to supposedly board member, then to an unwilling buyer. Twitter never put the company up for sale in the first place.
Twitter initially rejected Musk’s offer to join its board and eventually buy the company. In April, the company agreed to sell and signed a deal. But Musk counterfeited, showing cold feet. He even stated his reasons for having doubts about buying the social media company.
Furthermore, the latest turn of events between the two huge entities has also played out more on Twitter. Musk, who currently has 100 million followers on Twitter, kept complaining that the company failed to practice free speech. He also claimed it has too many spam bots.
Buying Twitter is an accelerant to creating X, the everything app
— Elon Musk (@elonmusk) October 4, 2022
Moreover, Musk’s lawyer said in a letter that he would close the deal he signed in April. This would only push through if the Delaware Chancery Court “enter an immediate stay” of Twitter’s charges against him and if the company adjourns the trial set to begin on October 17.
Musk stayed silent after these event twists. On Tuesday afternoon, he broke his silence. He tweeted, “Buying Twitter is an accelerant to creating X, the everything app.” However, he didn’t disclose further details. Most of his following tweets in the last 24 hours were about his recent proposal to end the Ukraine war.
An analyst at Intelligence Insider said, “The deal will solve some of the short-term uncertainty at the company, but Twitter is essentially in the same place it was in April.” It’s to say that even if the deal goes through smoothly, Twitter can’t claim victory. There’s too much uncertainty about what Musk plans to do with Twitter, so it isn’t over yet.