Elon Musk, the inventor of Tesla and SpaceX, has resurrected his prior offer to acquire Twitter for $44 billion. This comes many months after previous discussions broke down, which caused the social media behemoth to sue in an attempt to compel the enormous acquisition.
In a letter that he sent to Twitter on Tuesday, Musk restated his offer and suggested that they stick with an initial deal that was struck in April for $54.20 per share. He also filed a document with the Securities & Exchange Board (SEC) declaring his intention to purchase the company. In the document, Musk stated that he intended to buy the company.
While Twitter later reacted that it still hoped to complete the deal on its original deal, it did not specify whether it planned to drop its litigation against Musk, which was filed in July after the rich guy said he was going to abandon plans to buy the company amid a disagreement over how many bot and spam account holders are active on the site. The lawsuit was filed after Musk said he was ditching plans to buy the company during a dispute over how many bot and junk mail accounts are active on the site. Legal action is being taken in an effort to force Elon Musk to go through with the transaction. Musk is being accused of engaging in “bad faith” behavior throughout the negotiation process and creating a “public spectacle” out of the sale.
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CNN was able to get a copy of an internal mail that was sent out by Twitter’s General Counsel, Sean Edgett, in which he reportedly informed staff that the business will proceed with the transaction at the price of $54.20 per share.
He said to those working for him, “I will remain committed to keeping you updated on key changes; but, in the meantime, I would want to thank you for your tolerance while we work out this from the legal side.”
The announcement of the proposed acquisition caused an immediate spike in the price of Twitter shares, which resulted in a 20% increase by the time the markets closed late Tuesday.
In April, Musk made waves when he announced that he had become Twitter’s largest shareholder. However, his efforts to acquire the platform had also remained uncertain in the days or weeks since, as the entrepreneur accepted, and then turned down, a bid to sit on the company’s board in advance of the bot controversy.
After his revised intentions were made public, Elon Musk sent out a tweet in which he said that purchasing Twitter would only be “an accelerant to constructing X.” Musk referred to X as the “everything app” of the future. However, in keeping with his customary trolling and sometimes cryptic posting style, the CEO of the technology company gave no specifics on the idea, allowing observers to guess what he could have in mind.