Will Elon Musk finally agree to buy Twitter?
After months of headline-grabbing rollercoaster legal battles, it appears the Tesla CEO, 51, is finally ready to give up on his original deal to buy Twitter for its initial offer of $54.20 a share.
Elon Musk Agrees to Buy Twitter for $54.20 a Share After a Rollercoaster Legal Battle
Twitter | Elon Musk
Earlier this year, the SpaceX founder quietly began buying shares of Twitter until he became the company’s largest shareholder. Although the company offered him a seat on the Board of Directors in exchange for his agreement not to buy any more shares, Musk declined the offer and later approached Twitter board chairman Bret Taylor with a text message offering to buy the company for $54.20 per share.
Although the company initially tried to use a “poison pill” defense against the acquisition, they later decided to accept Musk’s offer and Musk began selling shares in his electric car company to purchase the $44 billion dollar purchase. However, it wasn’t long until Musk started tweeting that the deal was “on hold” and seemed to express his doubts about going ahead with the purchase.
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The doubt then came into action when Musk filed to “terminate” his deal with the social media giant, claiming that they breached their merger agreement by failing to disclose the exact number of bots and spam accounts on the platform. Musk feels that the number of bot and spam accounts on the site is much higher than the five percent that Twitter CEO Parag Agrawal initially claimed.
Although its lawyers originally fought for a 2023 court date, Twitter argued that waiting until next year could hurt the company’s stock and Judge McCormick agreed, scheduling a date in Delaware Chancery Court later this month.
However, the billionaire backed away from his initial termination request and offered to buy Twitter at its original price of $54.20 if the judge agreed to delay the trial before it began.
Twitter Accepts Musk’s Agreement To Buy Company
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On Tuesday afternoon, Deadline reported Twitter’s official statement, which was filed with the SEC.
“We received a letter from Musk that they have filed with the SEC. The Company’s intention is to close the transaction at $54.20 per share,” the statement began.
“Gentlemen… we are writing to inform you that the Musk Parties intend to proceed with the closing of the transaction contemplated by the April 25, 2022 Merger Agreement, based on the terms and subject to the conditions set forth therein and pending receipt of the proceeds of the financing debt contemplated thereby, with provided the Delaware Court of Chancery made an immediate stay of the action, Twitter v. Musk, et al. (CA No. 202-0613-KSJM) (“Action”) and stay the trial and all other proceedings related thereto pending the conclusion or further order of the Court.”
“The Musk parties provide this notice without admission of liability and without waiver or prejudice to any of their rights, including their right to assert defenses and counterclaims pending in the Action, including if the Action is not terminated, Twitter fails or refuses to comply with its obligations in under the April 25, 2022 Merger Agreement or if the otherwise contemplated transaction fails to close.”
As The Hollywood Reporter points out, the company’s shareholders gathered together for a special meeting on Tuesday, September 13, to vote on whether they approve selling the company to Elon Musk despite then refusing to buy the company.
In that meeting, Twitter shareholders approved selling the company to the South African-born entrepreneur for $54.20 a share, which Musk now appears to have agreed to.
After investors heard that Musk was ready to signal that he was ready to follow through on a buyout deal, Twitter shares rose 13%. Despite being halted from trading at several points throughout the day, the stock managed to jump as high as 18%.
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Source: thtrangdai.edu.vn/en/
