According to NPR, Elon Musk wants to continue with his original offer to purchase Twitter at the previously agreed price. This is according to a source close.
According to a person, Tesla CEO and billionaire Tesla sent Monday night a letter to Twitter, which could end the drag-out, knock-down legal battle over the merger he attempted to abandon in July.
Bloomberg first reported the news. It sent shares of the social media company, which was in financial trouble, up 13% just before the Nasdaq stopped trading.
Musk had initially agreed to purchase Twitter for $54.20 per share, or approximately $44 billion in May. However, he tried to renegotiate the deal when the company’s stock price plummeted and other tech stocks fell.
Twitter sued Musk to make him abide by the agreement. In less than two weeks, a trial will begin. The company has two weeks to decide whether to accept Musk’s offer again or to force Musk to appear in court to try to close the deal.
Reps from Twitter and Musk did not respond to our requests for comment.
A tumultuous Durbar Twitter was not called for
Since Musk’s initial interest in Twitter in April, Musk and Twitter have been at odds for almost a year. Musk was Twitter’s largest shareholder and then became a board member. He went on to become an unwilling buyer.
Twitter, which had never offered itself for sale, was forced to buy Musk’s Twitter. However, it also acknowledged that Musk’s ownership was disrupting its already failing business.
Musk used Twitter to criticize the company’s products and attack its executives, as well as keep the world guessing what he would do next.
In January, the billionaire started buying Twitter shares. He was the company’s largest individual shareholder by spring but he didn’t notify regulators and the public until April. According to Twitter’s lawsuit, he stated that he could join the board, purchase the company, make it private, or create a new social network.
Musk accepted and then rejected an invitation to join the company’s board. He made an unwelcome offer to purchase Twitter at $54.20 per share or $44 billion.
Twitter initially refused to accept the “poison pills” in order to slow down Musk’s progress and allow the board and management to compare his offer with other prospects. Musk began tweeting vague references to making a tender offer to Twitter shareholders in an attempt to win his favor.
In late April, Twitter finally agreed to sell it to Musk. Musk and the company signed a deal where Musk agreed to waive any further due diligence, promised to invest tens to billions of dollars, and promised to not use his Twitter megaphone for discrediting the company. Another important protection was provided for Twitter by the deal. It stated that if Musk attempted to back out, the company could sue him to stop the purchase.
The trial was scheduled for this month because of Kasturi’s change of heart
Musk suggested that he was feeling cold feet even though the ink had barely dried on the agreement. Musk stated that one of his goals in purchasing Twitter was to fix its long-standing problems with spamming and automated bot accounts. Soon, he started to say that he did not want Twitter to be bought because of its bots. He also accused the company and the public of misleading him about the extent of the problem. (Twitter claims that about 5% of its daily users are fakes for many years.
He announced that he was ending the deal in July. He cited his concerns about Twitter’s user numbers as well as his claims that Twitter had deceived him. Two days later, Twitter responded with a lawsuit requesting that Musk be held to the terms of sale.
Twitter accused Musk, claiming that he was suffering buyer’s regret. They noted that the price Musk agreed to pay made it seem high and reduced the value of his Tesla stake, his main source of wealth.
Musk’s claims regarding bots were not relevant to the question of whether or not he violated the legal agreement. This was without mentioning how many accounts are fake on Twitter.
Musk actually amended his legal argument after Twitter’s former security chief filed a federal complaint alleging that Twitter was placing users’ privacy at risk by allowing insecure security practices. (Twitter called the allegations false, inconsistent, and opportunistic.
Musk’s reversal follows an unusually long discovery phase in which both attorneys filed over a hundred subpoenas and took many depositions.
Emails and texts from internal sources began to leak out about the case, including a cache of Musk’s text messages in which some of Silicon Valley’s most prominent and powerful names begged for a share of the deal. They also gave free advice and generally embraced Musk.
Musk will be taking a deposition next week. The trial will begin on October 17.
Hi there, I’m Shakti Makvana. I like to write blogs on Entertainment, Sports, News and Technologies. Thanks for being here today!