The CEO of Tesla and SpaceX, Elon Musk, has agreed to resume his Twitter buyout plan for $54.20 per share as per his initial plan. The social media company’s shares jumped 18% after the news was released after a brief halt in trading.
Elon Musk resumes Twitter purchase plan for $44 million
A report by Bloomberg quoted people familiar with the matter who said that Musk had renewed his offer to buy the social media company. The people who revealed Musk’s letter on the matter requested anonymity because the information was confidential.
Musk’s initial offer to buy Twitter was $54.20 per share, for $44 billion. Musk made this initial offer in April this year. At the time, he said he needed to make Twitter a “digital town square” and protect the principle of free speech.
Musk and Twitter have been locked in a legal battle following the billionaire’s withdrawal from the Twitter buyout deal. The social media company sued Musk shortly after to force him into following through on this deal.
In the original merger agreement, there was a provision that would compel the two parties to follow through with the deal, failure to which a fine would be paid. Twitter was suing Musk to pay the agreed-upon fine for failing to honor his end of the deal.
Twitter also said that Musk was behind the company’s weak Q2 earnings. The company said that the uncertainty around the deal created a rough environment during the quarter as the company’s shares tanked.
Musk’s plan for Twitter
Musk announced his plan to purchase Twitter shortly after the resignation of the company’s CEO, Jack Dorsey. Musk said that he withdrew from the deal due to fears that the social media company provided fake details about the spam and bot accounts on the platform.
In May, Twitter claimed that bots only accounted for 5% of the accounts on the platform. However, Musk requested the verification of the statistics. Musk said that the scanty details on the matter were one of his main reasons behind withdrawing from the deal.
In a July filing, Musk said that the social media company failed to provide information that did not have other conditions. The billionaire also said that the company’s strategy of providing the information only made the details “minimally useful.”
Musk seems to have intentions to create a decentralized Twitter. Last week, Twitter released private messages between the Tesla CEO and Jack Dorsey as part of the legal discovery process. The private messages showed that Musk intended to create a decentralized platform that protected free speech. Musk also talked to popular members of the crypto community, including the FTX CEO, Sam Bankman-Fried, about a blockchain-based Twitter.
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