After months of back and forth, the world’s richest man, Elon Musk finally agreed to buy micro-blogging platform, Twitter for its original price of $44 billion.
The decision came to many as a surprise because Mr. Musk and the Twitter board are due to appear before Delaware’s court of chancery on October 17, after the Tesla CEO challenged the deal.
“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 and pending receipt of the proceeds of the debt financing contemplated thereby, provided that the Delaware Chancery Court enter an immediate stay of the action,” a letter written to Twitter read.
Twitter acknowledged the receipt of Musk’s letter saying: “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.”
Six months of fighting in vain
Mr. Musk’s deal to acquire Twitter was approved in April for $54.20 per share, amounting to $44 billion. However, the billionaire said the deal could not move forward until the Twitter Board provides evidence that less than 5 percent of users are bots or spam accounts.
On July 12, Twitter sued the billionaire in a bid to coerce him into completing the deal at the agreed price.
“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 board chair Bret Taylor said.
In the end, Mr. Musk delayed his ownership of Twitter for six months, only to go ahead with the same deal.
If the deal goes through, the world’s richest man will control the world’s most popular microblogging platform. The deal is also expected to affect politics, after Mr. Musk said he would guarantee free speech, including bringing back the former President of the United States, Donald Trump, to the platform.
A decision that prevents a long and ugly court battle
Although the reason for Musk’s change of heart remains unclear, some have argued that he was aware that the court case will not go his way.
Dan Ives, managing director of Wedbush, said the decision was the best because it would prevent a long and ugly court battle.
“Musk proceeding with Twitter deal at $54.30. Writing was on the wall he could not win in Delaware and this saves both sides a long and ugly court battle ahead. Musk will now own the Twitter platform as an end to this saga and soap opera that began in April,” financial analyst, Dan Ives said on Twitter