• Friday, June 21, 2024
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Elon Musk finally agrees to buy Twitter

Elon Musk, chief executive officer of Tesla has offered to continue his $44 billion Twitter acquisition deal, months after the decision to walk away from the bid.

According to a letter on Monday filled by America’s Securities and Exchange Commission (SEC), Musk said, he “would proceed with the transaction on the original terms, pending receipt of the debt financing for the deal provided that the Delaware Chancery Court entered an immediate stay of the action.”

Twitter confirmed on Tuesday that it received Musk’s letter intending to close the transaction at the original share price.

“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,” Twitter said.

Meanwhile, in a tweet on Tuesday, Musk said he will be buying Twitter to fast-track the creation of a new app.

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“Buying Twitter is an accelerant to creating X, the everything app,” Musk tweeted.

The Tesla CEO currently owns a 9.2 percent stake in the company, representing 73,486,938 shares of Twitter which he offered to buy 100 per cent of Twitter for $54.20 per share in cash on April 14, 2022.

After an agreement between both parties on the bid, Musk made public that he has secured $7 billion in new funding, to fund the Twitter takeover.

Following the issues of fake and spam accounts on the micro-blogging platform, Musk on May 13, 2022, announced the suspension of his $44 billion acquisition deal, noting that he will not continue until the issue gets resolved.

However, On July 8, 2022, Musk announced the termination of the bid, stating that his decision came as a result of breach of multiple provisions of the merger agreement, which Twitter pursued legal action and a trial date was fixed for October 17.