Breaking Report: Musk Reverses, Plans to Go Through with Twitter Deal as Shares Are Halted
A new report claims that after months of claiming Twitter was not worth what he agreed to pay for it, Elon Musk will go through with his proposed purchase of the social media giant.
Bloomberg reported, the Tesla CEO will buy Twitter at the original agreed-upon price of $54.20 per share.
The Bloomberg report said Musk made the offer in a letter to Twitter.
*MUSK SAID TO PROPOSE TO TWITTER TO PROCEED W/ DEAL AT $54.20$TWTR shares just spiked and now are halted pic.twitter.com/cF6k1SfF1r
— Kailey Leinz (@kaileyleinz) October 4, 2022
Bloomberg said the sources for its report were “people familiar with the matter, who asked not to be identified discussing confidential information.”
Trading of Twitter shares was halted after the report emerged, according to CNBC.
After trading resumed, Twitter stock went up 12.7 percent to $47.93 per share before trading was halted again, according to Reuters.
The latest turn of events is part of a twisting saga that began with Twitter initially opposing Musk’s purchase, later agreeing to sell the social media giant to Musk for $44 billion.
In July, Musk said he wanted out of the deal, claiming that Twitter did not provide him with enough information, so he could judge for himself the extent of its fake accounts, which Twitter claimed were about 5 percent and Musk estimated were much higher.
Twitter responded by suing Musk.
“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.”
The case had been set for the Delaware Chancery Court on Oct. 17, according to CNBC.
Twitter’s shareholders have already approved the deal, noted The Washington Post.
In April, before the purchase became layered in drama, Musk talked about his reasons for buying Twitter.
“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.”
Truth and Accuracy
We are committed to truth and accuracy in all of our journalism. Read our editorial standards.
