Twitter Shares Rise By 22% As Elon Musk Relaunches Bid To Buy Company At Original Price

Billionaire businessman, Elon Musk, has agreed to proceed with the deal to buy social media platform, Twitter, at his original offer price of $54.20 per share or $44 billion, causing shares in the company to skyrocket by 22% to $52.02, which is the highest price the shares have attained since November last year.

According to a filing with the Securities and Exchange Commission (SEC), Musk’s representatives sent a letter to Twitter, informing the company of its intent to move forward with the deal, to which the company issued a statement confirming that it received the letter saying, “The intention of the Company is to close the transaction at $54.20 per share”.

The brief letter stated that Musk is willing to proceed with the deal if Twitter were to put an immediate stay on their lawsuit.

The letter that Musk’s lawyer, Mike Ringler, sent to Twitter’s lawyers reads:
“Gentlemen:
“On behalf of X Holdings I, Inc., X Holdings II, Inc. and Elon R. Musk (the “Musk Parties”), we write to notify you that the Musk Parties intend to proceed to closing of the transaction contemplated by the April 25, 2022 Merger Agreement, on the terms and subject to the conditions set forth therein and pending receipt of the proceeds of the debt financing contemplated thereby, provided that the Delaware Chancery Court enter an immediate stay of the action, Twitter vs. Musk, et al. (C.A. No. 202-0613-KSJM) (the “Action”) and adjourn the trial and all other proceedings related thereto pending such closing or further order of the Court.

“The Musk Parties provide this notice without admission of liability and without waiver of or prejudice to any of their rights, including their right to assert the defenses and counterclaims pending in the Action, including in the event the Action is not stayed, Twitter fails or refuses to comply with its obligations under the April 25, 2022 Merger Agreement or if the transaction contemplated thereby otherwise fails to close”.

The deal between Musk and Twitter, which was initially agreed upon on April 25th, was first put on hold a few weeks later by Musk after he alleged that Twitter had been dishonest about the number of bots on the platform.

There was a lot of back and forth between Musk and Twitter reps before he officially informed the company that he was terminating the deal on July 8, stating that Twitter had drastically underrepresented the number of bot accounts in its public filings.

Twitter sued Musk four days later, in a bid to force him to go ahead with the deal, arguing that Musk’s reason’s for terminating the deal were invalid. A trial was set to hold in Delaware Chancery Court on October 17.