After long weeks of what can be described as a saga between Twitter and its potential buyer Elon Musk, the world’s richest man is finally ready to acquire the social media giant, and at the original price of $44 billion.
Via a letter sent to Twitter by representatives of Elon Musk, Twitter was notified that the Tesla and Space X boss intended to move forward with the deal to acquire the company. The notice which was filed with the Securities and Exchange Commission (SEC) reads, “We write to notify you that the Musk Parties intend to proceed to closing of the transaction contemplated by the April 25, 2022 Merger Agreement, on the terms and subject to the conditions set forth therein.”
Prior to this letter, both parties were headed to court over the deal. Elon Musk noted that Twitter bots alongside the absence of ample information from Twitter to evaluate the deal were the reason for his delay turned termination. With no evidence to support his claim, Elon Musk said that up to 20 percent of Twitter’s user base was made up of fake or spam accounts while Twitter continued to reiterate less than 5 percent of its monetizable daily active accounts were bots. “The Twitter Board is committed to closing the transaction on the price and terms agreed upon with Mr. Musk and plans to pursue legal action to enforce the merger agreement,” Twitter’s board chairman said in response to this. The company has also alleged that Elon Musk was refusing “to honor his obligations to Twitter and its stockholders because the deal he signed no longer serves his personal interests” after entering a binding merger agreement. This may no longer be the case as Elon Musk is ready to go through with the deal.
In a statement, Twitter shared that “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 per share. Following the notice, Twitter shares closed up more than 22 percent on Tuesday.
According to details provided in the letter, the billionaire will go through with the acquisition deal “provided that the Delaware Chancery Court enter an immediate stay of the action, Twitter vs. Musk, et al. and adjourn the trial and all other proceedings.” This means that Elon Musk intends to proceed with the deal if the lawsuit between himself and Twitter comes to a halt.
On Tuesday, Elon Musk also tweeted that “buying Twitter is an accelerant to creating X, the everything app.” This suggests that Elon Musk has a grand plan and acquiring Twitter is a means to an end. He has, albeit, mentioned plans to launch a social media site called X if the Twitter bid falls through. For now we are not sure what plans Elon Musk has in the works but it seems that acquiring Twitter is the first step in the billionaire’s plans.
Ibhadojemu Lucky Emmanuel is a graduate of Education and Economics from the University of Benin. He has a passion for tech and business and has been writing professionally for over a period of five years. He's written across various topics and segments and knew tech-business was it when he first stumbled on it. He has a great passion for music and arts, and wants to visit as many countries as he can someday.
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