Musk wants Twitter again, he says, and Twitter is willing to give him another chance, for $44 billion.
It’s hard to tell if Elon Musk wants Twitter, or wants Twitter’s social buzz, as he reverses course yet again on his decision to buy the massive social media company.
In April, Musk signed on to buy Twitter, and shareholders approved. He backed out against contract, and that breech of contract is scheduled to go before a jury trial in only two weeks. Musk was supposed to face a deposition with Twitter’s attorneys beginning Thursday. This Thursday. Tomorrow. But instead, he’s come back around with an offer of $44 billion, the price originally agreed upon.
And in a tactic that may actually denote sincerity, he didn’t make this offer on Twitter. Instead, he did it through the proper channels, in a legal letter to the company.
Twitter has responded, filing an intent to close this massive transaction with the U.S. Securities and Exchange Commission. $44 billion comes out to $54.2 per share, slightly above the current going value of Twitter’s stock ($51.30, as of this writing).
Twitter has not, however, said that they intend to drop their lawsuit against the billionaire. Experts think the lawsuit will likely remain open until the deal is entirely, irrevocably sealed. Twitter is willing to proceed with the sale, but Musk has burnt any trust between them and the new offer could be only a third try at delaying the trial.
“I don’t think Twitter will give up its trial date on just Musk’s word — it’s going to need more certainty about closing,” said Andrew Jennings, professor at Brooklyn Law School, noting that the company may also be worried about Musk’s proposal being a delay tactic.”
Twitter stock is up at the news, but considered volatile. Just like Elon Musk.
Photo: Sergei Elagin / Shutterstock
