Twitter Confirms Intent to Close Elon Musk's Takeover Offer at Original Price

Twitter on Tuesday stated it had received a letter from Elon Musk which was filed with the US Securities and Exchange Commission.

Twitter Confirms Intent to Close Elon Musk's Takeover Offer at Original Price

Elon Musk also tweeted that the Twitter acquisition would help the creation of the 'X' app

  • Elon Musk sent Twitter a letter saying he will go through with deal
  • He is expected to complete the $54.20-per-share offer
  • Musk seeks dismissal of a shareholder lawsuit following his withdrawal

Twitter on Tuesday confirmed that Tesla CEO Elon Musk sent a letter saying he will go through the deal he signed early this year to buy the platform for $44 billion (roughly Rs. 3,58,300 crore).

"Twitter issued this statement about today's news: 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 (roughly Rs. 4,400) per share," the official account of Twitter Investor Relations wrote.

After the news broke, that the billionaire is proposing to continue with $54.20 ((roughly Rs. 4,400) per share to buy social media platforms, Twitter's share price increased to 12.7 per cent before trading was stopped for the second time. On the contrary, Tesla's shares dropped by about 3 per cent.

Musk has been locked in a bitter legal battle with Twitter since announcing in July this year that he was pulling the plug on his $44 billion (roughly Rs. 3,58,300 crore) purchase of the company following a complex, and months-long courtship.

Musk had cancelled the deal, claiming that he was misled by Twitter concerning the number of bot accounts on its platform. These allegations were forthrightly rejected by the company.

The latest report on the Twitter buyout deal comes ahead of the Delaware Court hearing on October 17, where the two sides are expected to clash over the multi-billion dollar buyout deal.

"This is a clear sign that Musk recognized heading into Delaware Court that the chances of winning vs. Twitter board was highly unlikely and this $44 billion (roughly Rs. 3,58,300 crore) deal was going to be completed one way or another," Reuters quoted Wedbush analyst Dan Ives as saying.

Earlier, Twitter had sought an order directing Tesla CEO to complete deal at $54.20 ((roughly Rs. 4,400) per share.

Meanwhile, Musk had called for the dismissal of a shareholder lawsuit against him for cancelling his deal and subpoenaing the social media company's former CEO.

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