Tesla CEO Elon Musk has changed his mind about buying Twitter at the original price of USD$44 billion, according to a letter to the company.
In the letter, the billionaire’s attorneys said he intended to move ahead to complete the transaction, however, the deal depends on the receipt of debt financing and if the court can adjourn the trial and all other legal proceedings related to closing the deal.
The offer came less than two weeks before a trial between the two parties is scheduled to start at the Delaware Chancery Court following Musk’s move to terminate his $44bn deal of purchasing the Micro-blogging social media platform asserting that Twitter had breached their agreement by refusing to crack down on spambot accounts.
After receiving the letter that Musk had decided to move forward with the acquisition, after all, Twitter responded in a statement Tuesday saying it intends to close the transaction at $54.20 per share.
“We received the letter from the Musk parties which they have filed with the SEC. The intention of the Company is to close the transaction at $54.20 per share.” the statement read. The Telsa Boss’s notice sent Twitter’s stock price rocketing more than 12%, above $47 per share.
Twitter issued this statement about today’s news: We received the letter from the Musk parties which they have filed with the SEC. The intention of the Company is to close the transaction at $54.20 per share.
— Twitter Investor Relations (@TwitterIR) October 4, 2022
According to a source, both sides agreed to postpone Musk’s deposition in court scheduled for Thursday, but negotiations are ongoing to reach an agreement to end their litigation and close Musk’s $44 billion buyout of the company.
However, Twitter’s legal team was yet to accept any agreement prompting Kathaleen McCormick, the judge overseeing the case in the Delaware Court of Chancery to announce that the trial would go forward as planned.
“The parties have not filed a stipulation to stay this action, nor has any party moved for a stay. I, therefore, continue to press on toward our trial set to begin on October 17.” McCormick wrote in a Wednesday court filing.