- Elon has reneged on his intention to cancel the April Twitter purchase agreement.
- Twitter had filed a lawsuit against the Tesla CEO for the proposed deal cancellation.
- The social media platform’s shares rose by 22% as the information of Musk’s new decision became public.
Elon Musk, the founder of Tesla and SpaceX, has reversed his decision to pull out of the agreement to purchase Twitter Inc. to avert a contentious legal battle potentially.
Bloomberg revealed that musk wrote a letter to the social networking platform informing it of his decision to go ahead with the deal to acquire Twitter at the initial $54.20 per share.
Previously, Musk attempted to cancel the April contract, claiming that the social media platform had deceived him over the size of its user base and the prevalence of artificial accounts known as bots.
Consequently, Twitter filed a lawsuit against the Tesla CEO in Delaware Chancery Court to compel him to complete the acquisition after Musk formally terminated the agreement in July. Notably, the trial was supposed to start on October 17. Yesterday, the Delaware judge requested a response from all parties outlining how they would move the matter forward.
The latest offer from Musk may finally end the battle between the billionaire and the social media platform, as Twitter acknowledged receiving the letter and vowed to complete the transaction at the agreed-upon cost.
Interestingly, Twitter shares rose by 22% as the information of Musk’s letter became public, representing the biggest gain in the last seven months, according to the New York market’s closing bell.
A part of the letter read: Musk Parties intend to proceed to the closing of the transaction contemplated by April 25, 2022, Merger Agreement on the terms and subject to the conditions set forth therein and pending receipts of the proceeds of the debt financing contemplated thereby.
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