October 4, 2022
photo released, Reuters
Billionaire Elon Musk has once again changed his mind about buying Twitter and is now ready to proceed with the acquisition of the social media platform.
In a letter to the company, Musk agreed to pay the price he had offered months earlier before trying to back out of the deal.
The sudden decision comes just two weeks before the two sides go to court.
Twitter, which is suing Musk to force him to complete the acquisition, is seen as the strongest party in the case.
In the letter, Musk’s lawyers said he intends to move forward to complete the deal, pending receipt of funding and an end to the legal battle.
A Twitter spokesperson said the company received the letter, adding that “the company’s intention is to close the transaction at $ 54.20 per share,” the price promised by Musk in April.
The announcement caused Twitter’s shares to rise by more than 20% to over $ 52 per share. But the value remained below the purchase price, indicating that investors remained skeptical of completing the deal.
When Musk first revealed his plans to buy Twitter in a $ 44 billion deal, he said he “wanted to clean up the platform’s spam accounts and preserve it as a place for free speech.”
But the billionaire, voracious Twitter user, is known for his impulsive style, Refused to buy after a few weeks, Citing concern that the number of fake accounts on the platform was higher than what Twitter officials said.
photo released, Getty Images
Twitter executives denied the allegations, saying Musk, the richest person in the world with a net worth of over $ 220 billion, wanted to abandon the deal because he was concerned about the price.
The volatility stems from a steep decline in the value of tech stocks, including Tesla, Musk’s electric car company that is behind much of his fortune.
The two sides face off in a long judicial battle, and the trial was due to begin on October 17, involving private messages and public disputes on Twitter.
In one of those conversations, Musk replied to Twitter boss Parag Agrawal with an emoji referring to “poop”.
Preparing for the trial required the involvement of some of the biggest names in technology, with lawyers from the two companies asking for contacts on the deal.
Some observers, who were surprised by the development, wondered if the latest development was a tangible offer or an attempt to stall.
On Twitter, which has been in turmoil since Musk first showed interest in the company, employees told the BBC that “their bosses were initially silent, even though the report went viral.”
Investors were skeptical that the acquisition would go ahead, especially as Musk was considered a high price for a company struggling to attract users and grow.
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