Elon Musk, the billionaire founder of Tesla Inc., has
offered to purchase Twitter for the initial offer price of $44 billion.
In a filing on the Securities and Exchange Commission (SEC),
Musk made the offer in a letter to Twitter.
The development comes ahead of a court trial between Musk
and Twitter in Delaware’s court of chancery on October 17, in which the social
media company was set to hold Musk to his $44 billion takeover bid.
“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 letter reads.
“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.”
Twitter also acknowledged receiving Musk’s letter.
“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 company said.
In April, the billionaire had clinched a deal to acquire
Twitter for $54.20 per share, amounting to $44 billion.
But after several internal turmoils on the buyout, Musk
decided to soft-pedal on his acquisition bid, accusing Twitter of misleading
investors about its number of daily active users.
He said the deal “could not move forward” until Twitter
proved its claim that less than 5 percent of users are bots or spam accounts.
Trading in Twitter shares was halted as the stock rose
following the spread of news of Musk’s latest proposal, according to a report
by Bloomberg.
It added that the shares rose as much as 18 percent before
trading was paused.
Commenting on the fresh proposal in a Twitter post on
Tuesday, Dan Ives, Wedbush managing director said: “Writing was on the wall he
could not win in Delaware and this saves both sides a long and ugly court battle
ahead”.
“Musk will now own the Twitter platform as an end to this
saga and soap opera that began in April.”
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