Twitter says it plans to close deal with Elon Musk
Twitter originally accepted Musk's $44B offer in April
Twitter shares soared on Tuesday afternoon after Elon Musk said that he intends to proceed with his original $54.20 per share offer to acquire the social media giant.
According to a letter filed with the U.S. Securities and Exchange Commission, Musk will follow through on the $44 billion acquisition pending the receipt of the deal's debt financing and provided the Delaware Court of Chancery stays Twitter's lawsuit against him and adjourns the upcoming legal trial that was slated to begin on Oct. 17.
"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 letter adds.
| Ticker | Security | Last | Change | Change % |
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| TWTR | NO DATA AVAILABLE | - | - | - |
A Twitter spokesperson told FOX Business that it has received Musk's letter and reiterated its intention to close the transaction at $54.20 per share. A representative for Musk did not immediately return FOX Business' request for comment.
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Twitter first accepted Musk's offer in April. However, the billionaire notified Twitter in July that he was planning to terminate the deal after claiming the company breached its obligations by misrepresenting the number of spam and fake accounts on the platform. Twitter maintains that spam and fake accounts make up less than 5% of its total users.
Tesla CEO Elon Musk is proposing to acquire Twitter for his original offer. | Reuters
In response, Twitter filed a lawsuit against Musk, accusing him of refusing to honor his obligations under the agreement because "the deal he signed no longer serves his personal interests." Musk proceeded to file a countersuit, which was amended last month to include allegations from whistleblower and Twitter's former security chief, Peiter "Mudge" Zatko.
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Wedbush analyst Daniel Ives called the proposal a "smart move," but he added that it is a "clear sign" that Musk recognized his chances of winning in Delaware were unlikely.
"Being forced to do the deal after a long and ugly court battle in Delaware was not an ideal scenario and instead accepting this path and moving forward with the deal will save a massive legal headache," Ives wrote in a note to clients on Tuesday. "We see minimal regulatory risk in this deal although now Musk owning the Twitter platform will cause a firestorm of worries and questions looking ahead among users and the Beltway."
The deal has already received approval from Twitter's shareholders.