Twitter confirms Elon Musk takeover bid, says it will close at original price – Flying Journals

Twitter confirms Elon Musk takeover bid, says it will close at original price

Twitter told regulators on Tuesday that Elon Musk agreed to buy the tech company for $44 billion.

San Francisco:

On Tuesday, Elon Musk offered to buy Twitter for an initially negotiated price, just weeks before plans for a heated court battle over his efforts to get out of the deal began.

The world’s richest man said in an SEC filing that he had sent a letter to Twitter pledging to honor the contract.

The latest twist in the long-running saga comes ahead of a high-stakes trial launched by Twitter in an attempt to get the Tesla CEO to abide by a deal he signed in April.

Musk’s potential stewardship of the social media site has sparked concerns among activists that he could open the door to more abusive and misleading posts.

Early reports of Musk’s U-turn on Tuesday sent Twitter’s shares soaring, triggering a trading halt that resumed following regulatory filings.

“We are writing to inform you that the Musk parties intend to proceed with closing the transaction,” read a copy of the letter to Twitter filed with the SEC.

Twitter confirmed to AFP that it had received a letter from Musk and said it intended to close the deal at an agreed price of $54.20 per share.

The conditions mentioned in Musk’s letter include the court stopping the lawsuit brought against him. Later this week, he will be sworn in by Twitter’s lawyers.

– Consumers regret? –

“I think Musk realized he wasn’t going to win that trial,” University of Richmond law professor Carl Tobias told AFP.

“Ever since he had buyer’s remorse, the question has been why and why he didn’t do his due diligence up front.”

A serial entrepreneur who made his fortune from the success of Tesla’s electric vehicles, Musk began pulling out of the Twitter deal shortly after the deal.

He said in July that he canceled the purchase because he was misled by Twitter about the number of fake “bot” accounts, allegations the company rejected.

Meanwhile, Twitter tried to prove that Musk was making excuses to leave because he changed his mind.

In July, a Delaware judge agreed to a fast-track trial against Twitter’s allegations that the company believes hampered its financial performance.

Wedbush analyst Dan Ives said in an email that Musk’s apparent turnaround shows he recognizes “that this $44 billion deal is going to be done in one way or another.”

The lawsuit alleges that Musk made an unsolicited bid to acquire Twitter, but did not ask about estimates about spam or fake accounts, and even boosted his offer to the board by revoking due diligence conditions.

“Ultimately, we won’t know why Elon chose to change course before trial, although we speculate he would prefer to keep details of negotiations or legal proceedings private — including testimony,” Baird Equity Research analysts told investors.

– Freedom of speech –

Musk, seen by his advocates as an unconventional genius and his critics as a capricious megalomaniac, has surprised many investors with his pursuit of Twitter.

A self-described free speech advocate, he has said he favors lifting the site’s ban on Donald Trump, who was fired shortly after the former president’s failed election attempt to overturn him led to the 2021 attack on the U.S. Capitol. .

“Musk has made it clear that he will remove Twitter’s community standards and safety guidelines, restore Donald Trump and dozens of other accounts suspended for violence and abuse, and open the floodgates of false information,” said the president of the watchdog group Media. Angelo Carusone said. Important to America.

“Essentially, Musk will turn Twitter into a fanatical swamp of dangerous conspiracy theories, partisan shenanigans and actionable sexual harassment.”

Musk’s violation of norms on Twitter follows a record of past statements by Tesla and SpaceX chiefs ignoring or testing conventions, which have sometimes sparked a crackdown by regulators.

Just Monday, he was embroiled in a Twitter spat with Ukrainian President Volodymyr Zelensky over ideas to end the Russian invasion.

(Apart from the title, this story was unedited by NDTV staff and was posted from a syndicated feed.)

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