Elon Musk Said He Would Move Forward With a $54.20 Per Share Twitter Deal: Media

This month, Elon Musk and Twitter were scheduled to appear in court. Twitter was asking the judge to order Musk to consummate the transaction at $54.20 a share.

According to two persons with knowledge of the situation, billionaire Elon Musk wants to go with his original $44 billion bid to take Twitter Inc. private. This would put an end to the contentious legal dispute that was ready to go to trial.

The settlement puts the richest person in the world in charge of one of the most powerful media outlets and puts an end to months of contentious litigation that hurt Twitter’s reputation and fueled Musk’s reputation for acting erratically.

Musk, the CEO of electric-car manufacturer Tesla Inc., will take over a company he first committed to purchasing in April but quickly changed his mind about.

Before trading was again suspended, Twitter shares increased 12.7 percent to $47.93, while Tesla shares increased by around 1%.

According to an earlier story from Bloomberg News, Musk put forth the idea in a letter to Twitter. It mentioned instances of persons speaking about sensitive information while requesting anonymity.

Reuters’ inquiries for comment on Twitter and Musk’s attorneys were not immediately answered.

Twitter vs Musk

The announcement comes just days before a highly anticipated legal battle between Musk and Twitter in Delaware’s Court of Chancery on October 17. Twitter was planning to ask the court to require Musk to consummate the deal at $54.20 per share.

Musk agreed to purchase Twitter in April for $44 billion, or $54.20 per share, but claimed shortly after that a considerably higher percentage of accounts were bots than Twitter’s estimate of less than 5% of users. Bots are automated accounts, and their use may cause overestimations of the number of human users, which is crucial for determining advertising rates and the service’s overall worth.

Musk, one of Twitter’s most well-known users, asserted in July that Twitter had misled him about the number of actual users and the security of user data and that he was free to walk away from the agreement.

Wedbush analyst Dan Ives noted following the news that it was “obvious that Musk realised going into Delaware Court that the likelihood of winning against. Twitter board was exceedingly unlikely and this $44bn purchase was going to be finalised one way or another.”

Employees at Twitter expressed scepticism about tweets on Tuesday after being caught off guard in the middle of a meeting.

Rumman Chowdhury, Twitter’s director of machine learning ethics, transparency, and accountability, wrote: “I am sitting on 2023 company wide strategy readouts and I guess we are going to collectively disregard what’s going on.”

General Manager of Twitter Nick Caldwell made light of the fact that unlike in April, when Musk’s decision to back out of accepting a board position coincided with a company-wide day off, the upheaval this time was not occurring on a “day of rest.”

A loudspeaker for Musk

The agreement would allay Twitter users’ concerns about Musk’s aspirations for the social media site, which have already resulted in the removal of important political conservative voices. Trump backers are hoping that Musk will reinstate the former US president’s account, which was suspended following the attack by Trump supporters on the US Capitol on January 6, 2021.

The settlement gives Musk, who is already one of the most well-known and opinionated businessmen in the world, a platform from which to voice his opinions. He has sparked controversy on Twitter before, most recently on Monday when he offered a peace plan for the Ukraine-Russia war, which was swiftly denounced by Volodymyr Zelenskyy, the president of Ukraine.

Text conversations discovered during the litigation revealed Musk’s plans to fight spam by authenticating users, change Twitter from ad-supported to subscription-based services, and implement services like money transfers.

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