Musk and Twitter were involved in a legal battle over active accounts.
QUICK FACTS:
- Billionaire Tesla CEO Elon Musk is moving forward with his $44 billion buyout of Twitter after the pair duked it out in legal proceedings.
- Musk reportedly sent a letter to Twitter’s legal team with terms on Tuesday, including a merger at the earlier agreed-upon price of $54.20 per share.
- The letter includes conditions that the deal hinges on debt financing, as well as the Delaware Chancery Court entering an immediate stay of the action between Twitter and Musk.
TWITTER’S RESPONSE:
- Twitter responded on Tuesday, 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.”
- Twitter did not say whether they had agreed on the next steps in their lawsuit against Musk for backing out of the original deal, which is still active.
- Stock trading for Twitter has been suspended after it jumped more than 11% following Tuesday’s initial Bloomberg report about the deal, making it $47.93 per share.
BACKGROUND:
- Musk pulled out of the agreement to buy Twitter after a disagreement on how to deal with potentially fake Twitter accounts, and how it could impact the evaluation of the company.
- Twitter sued Musk and he countersued, alleging they committed fraud and breach of contract due to a lack of transparency and proof of active users.
- Eventually, in late August, Twitter was ordered to give Musk info on 9,000 Twitter accounts that were audited to estimate the percentage of fake accounts on the platform.
