The company intends to conclude the acquisition at $54.20 per share, Twitter stated in a tweet, indicating the billionaire businessman is reportedly giving up his legal fight to void the contract.
Just weeks before the start of a lengthy legal battle over his attempts to back out of the deal, Elon Musk made an offer to finish his acquisition of Twitter at the original agreed-upon price on Tuesday.
The world’s richest billionaire said in a filing with the Securities and Exchange Commission that he wrote Twitter a letter committing to honour the contract. The most recent development in the protracted dispute occurs before of a crucial trial intended to hold Tesla CEO Elon Musk responsible for the agreement he signed in April. Activists worry that Musk taking over the social networking site would encourage more offensive and deceptive posts.
Early reports of Musk’s U-turn on Tuesday caused a spike in the share price of Twitter, leading to a trade stop that was later removed. According to a copy of the letter to Twitter that was filed with the SEC, “We write to notify you that the Musk Parties plan to continue to deal closely.”
Twitter acknowledged receiving Musk’s letter and stating its intention to finalise the acquisition at the agreed-upon price of $54.20 per share in an AFP interview. In his letter, Musk requested that the court halt the prosecution of him. Later this week, he was scheduled to answer questions from Twitter lawyers under oath.
The trial on Twitter’s objections, which the firm claimed were impeding its financial performance, will proceed more quickly, a Delaware judge agreed in July. The apparent flip by Musk, according to Wedbush analyst Dan Ives, proved that he was aware that “this $44 billion deal was going to be concluded one way or another.”
Musk allegedly proposed to buy Twitter in an unsolicited manner without requesting estimates of spam or phoney accounts and even made his offer to the board more enticing by removing a diligence requirement.