By CHRIS PANDOLFO | October 04, 2022
Tesla CEO Elon Musk’s $44 billion deal to buy Twitter is back on after the multi-billionaire offered to close the deal, which would put an end to pending litigation and a dramatic back-and-forth with the social media company. Musk made his proposal in a letter to Twitter that was filed with the Securities and Exchange Commission on Monday and first reported by Bloomberg. Twitter issued a statement saying the company has agreed sell at Musk’s original offer price of $54.20 per share.
“We received the letter from the Musk parties which they have filed with the SEC. The intention of the Company is to close the transaction at $54.20 per share,” Twitter said.
Musk’s attorneys wrote that deal will close pending a Delaware judge’s agreement to stay Twitter’s pending lawsuit against Musk and the ability of Musk to secure financing.
“The Musk Parties provide this notice without admission of liability and without waiver of or prejudice to any of their rights, including their right to assert the defenses and counterclaims pending in the Action, including in the event the Action is not stayed, Twitter fails or refuses to comply with its obligations under the April 25, 2022 Merger Agreement or if the transaction contemplated thereby otherwise fails to close,” the letter said.
The letter brings an end to the drama over Musk’s attempt to acquire Twitter. The billionaire businessman purchased a 9.6% stake in the company before rejecting a seat on Twitter’s board and threatening a hostile takeover. He offered to buy out Twitter for $44 billion in April but then tried to back out of the deal in July by claiming that Twitter had made false claims about how many fake or bot accounts are on its platform. After Twitter sued Musk to make him follow through with the agreement, he added claims from a whistleblower that Twitter deceived regulators about “extreme, egregious deficiencies” in combating hackers and spam to his complaint.
Outside observers had predicted that Musk’s effort to back out of the deal was likely to fail. Some analysts suggested that he was trying to negotiate a lower sale price from Twitter.
“Musk proceeding with Twitter deal at $54.30. Writing was on the wall he could not win in Delaware and this saves both sides a long and ugly court battle ahead,” said Wall Street tech analyst Daniel Ives.
Musk was scheduled to be deposed in the Delaware Chancery Court on Thursday and Friday.
Twitter shares surged as much as 18% on the news that he offered to complete the deal, according to Deadline.