Elon Musk no longer wants to sue Twitter and is ready to buy the social network
Elon Musk, who the day before yesterday took his lumps from the Ukrainians for his ridiculous offer of peace talks with Russia, has changed course and is again offering to buy Twitter for $54.20 per share. A deal could happen as early as Friday, writes CNBC. Trading of Twitter shares was suspended but managed to close with a gain of more than 22%.
The social network published a statement in which it said it had received a letter from Musk and was ready to “close the deal at a price of $54.20 per share.” In a filing with the US Securities and Exchange Commission (SEC), Musk sent a Twitter letter on Monday informing the company of his intention to extend the deal agreed on April 25, the day it was publicly announced.
A few weeks after Musk sent an official offer to buy Twitter Inc., valuing the company at $44 billion, he tried to play it all back, announcing his intention to terminate the agreement. Twitter sued Musk to force him to make the purchase. Both sides were scheduled to appear in the Delaware Court of Chancery on Oct. 17.
Musk claimed that Twitter did not provide him with true information about the number of “bots” as one of the reasons why it is abandoning the deal. He and his lawyers argued that the social network misled investors by providing false numbers in corporate filings with the Securities and Exchange Commission.
However, Twitter responded that Musk’s fraud claims were untrue and based on a misunderstanding of how the company counts the number of bots and fake accounts on its platform.
Musk also claimed that Twitter did not provide him with necessary data related to spam and bots, which the company denied. They also said that Musk was looking for a reason to back out of the deal when its stock fell along with the broader market decline.
Although Mask tried to postpone the court hearing‘s date, Delaware Chancellor Kathaleen McCormick denied his request, citing that Twitter could suffer “irreparable harm.” However, it allowed Musk and his lawyers to amend their counterclaim to include some of the allegations made by Twitter’s former security chief in a separate whistleblower lawsuit against the company.
However, in September Twitter shareholders approved Musk’s original proposal about the purchase of the company, and it seems that the deal will take place after all.