Elon Musk has agreed to purchase Twitter for the initially agreed upon sum of $44 billion, or $54.20 per share. Now, the high-profile legal dispute is expected to come to a conclusion.
Two weeks before the trial was scheduled to begin, Musk wrote to Twitter on October 4 with an offer to proceed with the sale.
According to popular opinion, Twitter had a superior case, thus it would succeed in getting Musk to agree to the merger or pay a $1 billion breakup fee.
The deal would now proceed once debt financing was acquired, the Tesla CEO wrote in a letter posted to Twitter, providing the court paused the legal action and postponed the upcoming trial and related proceedings.
The letter stated that “The Musk parties submit this notice without admitting culpability and without waiving or compromising any of their rights.”
A Twitter representative said in a statement that the business has received the letter and that its “intention is to close the transaction at $54.20 per share.”
Musk posted on Twitter earlier today that “Buying Twitter is an accelerant to inventing X, the everything app”.
According to the Financial Times, the parties attended a court session via Zoom earlier today with Judge Kathaleen McCormick.
After the deal was revealed, Twitter’s share price increased from $42.95 to $52.
According to Neil Campling, director of TMT research at Mirabaud Equity Research, Elon Musk will move forward with his Twitter acquisition. The obvious inference might be that this shows how weak Musk’s legal defenses were in the situation.
Campling said that it seemed as “simple conclusion,” but Elon Musk had never done anything “simple.” And, the accent goes to “never”. What other elements might be in play? Well, this comes right after Tesla revealed their abysmal Q3 delivery figures, which were revealed on Sunday while the markets were “sleeping.” The Twitter announcement does seem to be a typical Musk diversionary strategy.
