Twitter submitted revised regulatory documents on Tuesday (4th) showing that Tesla CEO Elon Musk intends to buy Twitter for $44 billion in accordance with the offer in the April acquisition agreement.
The legal battle between the world’s richest man Musk and Twitter is regarding to start on October 17. The trial period is 5 days, but less than two weeks before the trial, Musk sent a letter to Twitter on Monday (3rd) saying that Musk Willing to go ahead and complete the Twitter acquisition at the original offer of $54.20 per share.
The letter mentions that Musk intends to proceed with the acquisition as long as he receives the financing he originally received, and that Musk wants the court to suspend the trial and all other proceedings.
A Twitter spokesperson confirmed Tuesday that Twitter received a letter from Musk to the U.S. Securities and Exchange Commission (SEC) that the company hopes to close the deal at $54.20 per share.
Twitter and Musk have agreed to move forward with the acquisition agreement originally reached on April 25, 2022, and are currently discussing how to secure the deal. The judge in charge of the trial asked both sides to contact her by the end of Tuesday, the sources said, with a potential plan to dismiss the lawsuit.
Musk reached an agreement with Twitter in April this year, agreeing to buy Twitter at $54.2 per share and a total price of regarding $44 billion. Unexpectedly, three months later, Musk announced the termination of the acquisition in July on the grounds of fake account data. special transaction. Twitter officially filed a lawsuit in the U.S. court in Delaware on July 12, asking Musk to fulfill the acquisition agreement.
Hedge funds including Pentwater Capital Management and Greenlight Capital are betting that Musk will lose the lawsuit this time around, says Anat Alon-Beck, an assistant professor of law at Case Western Reserve University. ) said: “Musk has finally listened to his legal team, and if he doesn’t try to buy Twitter now, but is forced to buy it following losing a lawsuit, he will be a big fool.”
“Acquiring Twitter is an accelerator for building X (a community platform app),” Musk tweeted on Tuesday, noting that acquiring Twitter might speed up the effort by three to five years, though he admitted he might be wrong of.
Motivated by this news, Twitter (TWTR-US) was suspended several times during intraday trading on Tuesday, and closed 22.24% higher at $52.00 per share, the highest since November 16 last year, but still slightly lower than the acquisition price of $54.20 per share. Tesla (TSLA-US) on Tuesday gave up as much as 6.2% of its gains, briefly turning lower, before closing up nearly 3% at $249.44 a share.
