Tesla CEO Elon Musk is reportedly proposing to buy Twitter for $54.20 a share, the offer made in April when the approximately $44 billion deal first went through, according to Bloomberg.
The potential offer would bring an end to the legal battle that ensued after he backed out in the summer over the company’s failure to disclose the extent of the social media giant’s bot issue.
Twitter sued Mr. Musk in July to force the completion of the acquisition, and was set for a showdown with the billionaire this month in a Delaware courtroom. The company argued in legal filings that Mr. Musk’s reasons for abandoning the deal were smoke screens, and suggested that he had simply hoped for a lower price after stock market declines had decreased his overall wealth.
Mr. Musk said Twitter had most likely undercounted the amount of spam on its platform, making the company less valuable than he had initially believed. He also cited whistle-blower claims from a former Twitter executive, who said the company had misled regulators about its security practices, as a reason to exit the deal.
Mr. Musk submitted a proposal to Twitter on Monday evening, a person familiar with the conversation said. The parties met in court on Tuesday to discuss the proposal. (NYT)
Twitter shares jumped 12 percent after reports surfaced about the reported deal, before trading was halted.
CNBC's David Faber says Elon Musk, following his letter of intent to buy Twitter at $54.20 a share, may own the company by as early as Friday. pic.twitter.com/QMRw9sz58X— The Recount (@therecount) October 4, 2022
Elon Musk has reportedly decided to go forward with the deal to buy Twitter. You have to wonder if the massive attack by bots on his tweets yesterday + calls for censorship led @elonmusk to conclude it was worth it to own Twitter, end the censorship and destroy bots at any price.— Robby Starbuck (@robbystarbuck) October 4, 2022