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Elon Musk makes a U-turn, he declares to buy Twitter again

Elon Musk
Credit: Wired

Elon Musk has reported on Twitter that he is once yet again ready to buy the company at the initially agreed-upon price, conferring to a Bloomberg News report.

“Elon Musk is suggesting to buy Twitter Inc. for the original offer price of $54.20 a share… Musk made the proposal in a letter to Twitter, according to people familiar with the matter, who asked not to be identified discussing confidential information,” Bloomberg wrote.

The Wall Street Journal then reported that Musk’s “lawyers communicated the proposal to Twitter’s lawyers overnight Monday and filed a letter confidentially with the Delaware Chancery Court ahead of an emergency hearing on the matter scheduled for Tuesday.”

The reports arise fewer than two weeks earlier than a trial is planned to determine whether Musk would be obligatory to go through with the contract. Musk settled to buy Twitter on April 25, then tried to abandon the deal on July 8. Twitter sued Musk in the Delaware Court of Chancery to force him to make the $44 billion purchase, and a five-day trial is arranged to start on October 17. Musk also planned to answer questions in a statement later this week.

“If Twitter accepts the proposal, the two sides wouldn’t have to follow through on a five-day nonjury trial set to begin October 17. There are no guarantees they will reach a deal and the trial could still go forward as planned,” the WSJ wrote. Trading of the Twitter stock was provisionally stopped after the Bloomberg report. After trading restarted, the stock price rose nearly 13 percent, hitting $47.93.

 If the deal occurs the way it seems right now, it’s a most important win for Twitter shareholders who fixed it out through all the ambiguity. They stand to make a considerable premium on their reliance on the deal. We’ve seen it over and over again with Musk throughout this process. people believe in this deal only when it’s closed, and established, and Twitter is in Musk’s hands.

Everyone in the business world is surprised that Musk is agreeing to $54.20. It’s a huge overpay. The chances were against him in court but not a sure thing. It’s notable that he didn’t land any concerns, as far as we know.