Reports Hint Closure of Legal Fight Over $44B Twitter Deal
In what comes as a big announcement, Musk’s lawyers according to reports have sent a letter to Twitter asserting that the Tesla chief intends to move forward with the purchasing of the comapnu at the original offer price which is $ 54.20 per share. In the letter sent on Monday, Musk’s lawyer sent to the microblogging platform confirmed to proceed with the deal.
Twitter shares jumped 12.7 per cent to $47.93 before trading was halted for the second time, while Tesla shares rose by about 2.4 per cent.
The news comes ahead of the highly anticipated face-off between Musk and Twitter in Delaware’s Court of Chancery on October 17, in which the social media company was set to seek an order directing Musk to close the deal for $44billion.
Ever since the billionaire, chief executive of electric car maker Tesla Inc., in charge has alleged Twitter guilty of not complying with its contractual obligations, the takeover has been a quandary.
Twitter sued Musk after he in July announced to back out from the deal and no longer wanted to invest in the company.
In attempts to call off the deal, Musk at first had cited bot spams as the reason for which he demanded proof that fewer than 5% of Twitter’s 229 million daily users in the first quarter were fake or spam-focused, an important metric for understanding Twitter’s ads business.