The on again, off again Elon Musk- Twitter deal is back on again.
According to Elon Musk, he’s ready to buy the social networking company for $44 billion, or $54.20 a share. And, as noted by Barron’s, “Musk’s lawyers wrote in the letter that Musk’s team intends to close the deal, pending the receipt of proceeds related to debt financing. That is all provided the court enters a stay and adjourns the trial and all other proceedings pending the deal closing. Twitter’s investor relations account acknowledged receiving the letter, adding that the company intends to close the deal at $54.20 a share.”
Analysts say this was a smart move on Elon Musk’s part, and that he must have realized his chances of winning a court battle were slim.
The court battle had been set for October 17.
TWTR last traded at $52 a share – up $9.46 on the day – on a volume spike to 49.6 million, as compared to daily average volume of 14 million.
If you want to read the letter that Elon Musk’s attorneys sent to Twitter, you can find it here. Or, for a quicker read, we’ve added it below.
“Gentlemen: On behalf of X Holdings I, Inc., X Holdings II, Inc. and Elon R. Musk (the “Musk Parties”), 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, Twitter vs. Musk, et al. (C.A. No. 202-0613-KSJM) (the “Action”) and adjourn the trial and all other proceedings related thereto pending such closing or further order of the Court.
The Musk Parties provide this notice without admission of liability and without waiver of or prejudice to any of their rights, including their right to assert the defenses and counterclaims pending in the Action, including in the event the Action is not stayed, Twitter fails or refuses to comply with its obligations under the April 25, 2022 Merger Agreement or if the transaction contemplated thereby otherwise fails to close.”
