According to a recent story, Elon Musk will proceed with his proposed purchase of the social media behemoth Twitter, after saying for months that the price he agreed to pay was too high.
According to Bloomberg, the CEO of Tesla will purchase Twitter at the agreed-upon price of $54.20 per share.
According to the Bloomberg article, Musk made the offer to Twitter in a letter.
— Kailey Leinz (@kaileyleinz) October 4, 2022
According to Bloomberg, the report’s sources were “people familiar with the matter, who asked not to be identified discussing confidential information.”
According to CNBC, trading of Twitter shares was paused when the news was released.
According to Reuters, once trading reopened, Twitter shares rose 12.7% to $47.93 per share before trading was suspended again.
Twitter originally opposed Musk’s acquisition, but subsequently agreed to sell the social media behemoth to him for $44 billion.
Musk stated in July that he wanted out of the agreement, arguing that Twitter did not provide him with sufficient information to determine for himself the extent of its bogus accounts, which Twitter believed to be 5 percent but Musk estimated to be far higher.
Musk replied by suing Twitter.
“Musk refuses to honor his obligations to Twitter and its stockholders because the deal he signed no longer serves his personal interests,” Twitter said in the lawsuit, according to The New York Times.
“Musk apparently believes that he — unlike every other party subject to Delaware contract law — is free to change his mind, trash the company, disrupt its operations, destroy stockholder value and walk away.”
According to CNBC, the matter was scheduled for the Delaware Chancery Court on October 17.
The shareholders of Twitter have already accepted the transaction, according to The Washington Post.
Musk discussed his motivations for purchasing Twitter in April, before the acquisition became entangled in scandal.
“Twitter has become kind of the de facto town square. So it’s just really important that people have both the reality and the perception that they’re able to speak freely within the bounds of the law,” Musk said, according to The Verge.
“This is not a way to sort of make money. My strong intuitive sense is that having a public platform that is maximally trusted and broadly inclusive is extremely important,” he said. “So the future of civilization, but you don’t care about the economics at all.”