Elon Musk Accepts Deal to Buy Twitter at $44 billion After Legal Battle
Elon Musk made moves to buy Twitter in April. His stated plan was to rethink Twitter's content policies and bolster free speech on the platform, and unlock Twitter’s “extraordinary potential.”
Musk later caused outrage after changing his mind about the deal. His reasons for the withdrawal include what he regarded as a bulk of bots dominating the social media platform.
In July, Twitter sued Musk for his bake-off from the agreed deal to buy the Social Media giant. The case raised public concerns in a manner that many thought would lead to a serious economic blow to the billionaire.
Musk who is also the richest man in the world, however, has recommenced talks this week to buy Twitter at the originally-agreed price of $44 billion but $54.20 per share.
"We received the letter from the Musk parties which they have filed with the SEC. The company intends to close the transaction at $54.20 per share," a spokesperson for Twitter said.
"On behalf of X Holdings I, Inc., X Holdings II, Inc., and Elon R. Musk (the "Musk Parties"), we write to notify you that the Musk Parties intend to proceed to close the transaction contemplated by the April 25, 2022 Merger Agreement, on terms and the subject to the conditions set forth therein and pending receipt of the proceeds of the debt financing contemplated thereby, provided that Delaware Chancery Court enter an immediate stay of the action, Twitter vs. Musk, et al. (C. A. No. 202-0613-KSJM) (the "Action") and adjourn the trial and all other proceedings related thereto pending such closing or further order of the court.
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 does not stay, 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. Source: Business Insider".
Business analysts have seen Elon Musk's moves on Twitter as a game of loss. About the deal, Wedbush Securities analyst, Dan Ives on BBC's Today stated "That's like me giving away caviar to buy a $2 slice of pizza".
Elon Musk has plans to make a lot of changes to Twitter. In most of his tweets, Musk wants to make a wide range of changes including enabling end-to-end encryption for Twitter’s direct messaging. This week, Musk suggested that Twitter will become part of an “everything” app called x.
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In July, Twitter sued Musk for his bake-off from the agreed deal to buy the Social Media giant. The case raised public concerns in a manner that many thought would lead to a serious economic blow to the billionaire.
Musk who is also the richest man in the world, however, has recommenced talks this week to buy Twitter at the originally-agreed price of $44 billion but $54.20 per share.
Musk's redress was contained in a letter written to Twitter by his lawyer Mike Ringer. The letter showed the Billionaire's readiness to proceed with the abandoned deal at the originally agreed price.
Although many regard the reversal as Musk's strategy to evade being fined by the court, it seems Twitter will accept the pact.
"We received the letter from the Musk parties which they have filed with the SEC. The company intends to close the transaction at $54.20 per share," a spokesperson for Twitter said.
Elon Musk Letter to Twitter as Published by Business Insider:
"On behalf of X Holdings I, Inc., X Holdings II, Inc., and Elon R. Musk (the "Musk Parties"), we write to notify you that the Musk Parties intend to proceed to close the transaction contemplated by the April 25, 2022 Merger Agreement, on terms and the subject to the conditions set forth therein and pending receipt of the proceeds of the debt financing contemplated thereby, provided that Delaware Chancery Court enter an immediate stay of the action, Twitter vs. Musk, et al. (C. A. No. 202-0613-KSJM) (the "Action") and adjourn the trial and all other proceedings related thereto pending such closing or further order of the court.
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 does not stay, 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. Source: Business Insider".
The Controversy on Musk's Twitter Deal Reinstatement
Business analysts have seen Elon Musk's moves on Twitter as a game of loss. About the deal, Wedbush Securities analyst, Dan Ives on BBC's Today stated "That's like me giving away caviar to buy a $2 slice of pizza".
Analysts are concerned because Musk has a $250 billion fortune in SpaceX stake and Tesla shares. In August, a report by Business Insider showed that Musk "offloaded $6.9 billion in Tesla shares", cutting down his stake at the company by $32 billion over the past year.
On Wednesday premarket, Tesla fell 1.26% to trade at $246.29 while Twitter slipped by 0.48% to $51.75.
Elon Musk's Planned Changes on Twitter
Elon Musk has plans to make a lot of changes to Twitter. In most of his tweets, Musk wants to make a wide range of changes including enabling end-to-end encryption for Twitter’s direct messaging. This week, Musk suggested that Twitter will become part of an “everything” app called x.
Musk intends to design Twitter in the like of a Chinese app WeChat. Many allege that Twitter may in the future, under Musk, support financial transactions as there would be tight security encryption. Meanwhile, Musk also plans to get rid of all bots from the platform and enhance strong security.
In a report by CNN Business, Musk during a talk with his brother said that he may ask users to pay for each tweet they post with small amounts of the cryptocurrency DogeCoin.
Elon Musk also wants to remove every form of a permanent ban on Twitter. "I do think it was not correct to ban Donald Trump, I think that was a mistake. I would reverse the perma-ban," Musk said.
In a report by CNN Business, Musk during a talk with his brother said that he may ask users to pay for each tweet they post with small amounts of the cryptocurrency DogeCoin.
Elon Musk also wants to remove every form of a permanent ban on Twitter. "I do think it was not correct to ban Donald Trump, I think that was a mistake. I would reverse the perma-ban," Musk said.
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