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Elon Musk backs off, agrees to buy Twitter for the initial price

The billionaire tycoon is willing to go ahead with the purchase of the social network for the $44 billion price he agreed to in April.

Elon Musk (Flickr)

Elon Musk (Flickr)

Published by
Grant Torres Franco

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Elon Musk is willing to go ahead with the purchase of Twitter at the price he agreed to in April, according to a letter his lawyer sent to the social network's legal team on Tuesday. He is maintaining his original offer of $44 billion, about $54.20 per share.

Musk has negated his offer on three occasions, claiming among other things that the tech company was not complying with certain points of the acquisition agreement, such as providing information on the number of fake accounts and advertising bots.

Conditions for the agreement to go ahead

This new initiative by the tycoon comes on the eve of the trial that was scheduled to take place between both parties on Oct. 17 in Wilmington, Del. This time, Musk seems to be serious despite the fact that the deal is contingent upon receipt of debt financing among other items set forth in the letter submitted by his lawyers:

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. and adjourn the trial and all other proceedings related thereto pending such closing or further order of the Court.

The Washington Post reported that Twitter intends to accept the Musk's offer at the original share price, but it is awaiting confirmation that the judge will oversee the process. Following news of Musk's move to strike a deal with Twitter, the company's share prices surged to $52, a 22% increase.

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