Turnabout Why Elon Musk
It looks like Elon Musk does want to buy Twitter after all. After the CEO of Tesla backed out of his first offer, he made the new U-turn. This would give both sides a chance to work out their legal disagreement about the billion-dollar business before the trial. But what caused this change of heart?
It looks like Elon Musk has changed his mind again. After going back and forth for months, the CEO of Tesla now seems to want to buy the short message service Twitter at the price that was originally agreed upon, which was $54.20 per share.
This is clear from a letter Musk sent to the US Securities and Exchange Commission not too long ago (SEC). Because of this, Twitter shares went up by about 20%. Bloomberg says that Twitter said the company had received the letter and was still looking for a deal, but didn’t give any details.
A Never-Ending Back And Forth Between Elon Musk And Twitter
When Elon Musk bought 9.2% of Twitter’s shares out of the blue in April 2022, the company surprised him by giving him a seat on the board. Musk was excited at first, but about a week later, he changed his mind.
The most likely cause? If Musk had been on the board, he wouldn’t have been able to buy more than 14.9% of the company. The CEO of Tesla then made an official offer to buy the short message service for 44 billion US dollars, which Twitter also agreed to. But after that, things got worse.
Because Musk ended the deal in writing in July 2022. The official reason is that the company would have kept information about fake accounts secret and given out false information. Twitter then went to court to make sure the deal was kept. Musk then replied with a different claim. Now, another change is about to happen.
Why, After All, Does Elon Musk Want To Buy Twitter?
In April, Elon Musk made an unsolicited offer for the social network worth more than $40 billion. He said he wanted to make Twitter a private company so that people could talk more freely on the service.
In July, Mr. Musk said he would no longer go through with the acquisition because he thought Twitter’s service was full of spam. Soon after, Twitter sued him. Mr. Musk sent Twitter his latest offer on Monday night and told the company that he was going to go with his first offer.
In the letter to the SEC, Elon Musk and his business partners say that they now “intend to complete the transaction contemplated by the merger agreement dated April 25, 2022, on the terms set forth therein.”
But Musk has to come up with a way to pay for the plan, and the court has to decide whether or not to “immediately stop the proceedings.” But it’s not clear why she suddenly changed her mind. There are some signs, though.
Musk’s shady text messages about how he dropped the deal were recently made public. In light of all this, it seems like Musk no longer thinks the upcoming trial has a chance. Many experts have said that Twitter has legal benefits in the past.
Judge Calls For A Plan To Settle The Legal Dispute Between Twitter And Elon Musk
It’s still not clear if the deal will go through or not. Because Musk and Twitter are still in court, and a trial is still set for October 17, 2022. Twitter showed that it was still trying to reach a deal, but Musk said in his letter that the case should be dropped.
Other experts, however, told The Verge that they don’t think the short message service will agree to this until the deal is finalised before the trial. According to The Wall Street Journal, the judge in charge has asked both sides to come up with a plan to end the lawsuit.
We still don’t know if this will work or not. At this point, though, it’s still up to the stars whether or not the deal will go through. But things should be clear by April 2023 at the latest. That’s when Musk’s contracts for getting money run out. If no agreement is reached by then, it’s likely that the matter won’t work out.
