Tuesday, May 30, 2023
HomeTechnologyMusk turns U-turn ahead of trial, tells Twitter he'll complete merger

Musk turns U-turn ahead of trial, tells Twitter he'll complete merger [UPDATE]

Reversal –

Musk, wanting to avoid trial, told Twitter he would close the deal at the original price.

Jon Brodkin

enlarge/ Elon Musk arrives at the Metropolitan Museum of Art in New York for the 2022 Met Gala on May 2, 2022.

Getty Images | Angela Weiss

Elon Musk tells Twitter he’s willing to buy again According to Bloomberg News, The company sells at the initially agreed price.

” Elon Musk proposes to The original offer of $54.20 per share to acquire Twitter Inc. … Musk made the proposal in a letter to Twitter, according to people familiar with the matter. Information,” Bloomberg wrote.

The Wall Street Journal then reported that Musk “On Monday night, the attorneys communicated the proposal to Twitter’s attorneys and confidentially filed a letter with the Delaware Chancery Court ahead of an emergency hearing on the matter scheduled for Tuesday.”

These reports are not pending before a planned trial to determine whether Musk will be forced to stand trial released in two weeks. o Complete the transaction. Musk agreed to buy Twitter on April 25, then tried to pull out of the deal on July 8. Twitter is suing Musk in Delaware Chancery Court to force him to complete a $44 billion acquisition, scheduled for Oct. 17. Musk also plans to answer questions in his testimony later this week.

“If Twitter accepts the offer, the parties will not have to proceed with the A five-day non-jury trial that begins Oct. 17. There is no guarantee they will reach an agreement and the trial can still go ahead as planned,” the Wall Street Journal wrote.

Twitter stock trading temporarily halted after Bloomberg reports. Shares rose nearly 13% to $47.93 after trading resumed.

Case in which Musk seeks to remain in court

Update, 5:12pm ET : Musk’s letter to Twitter is now public and included in the SEC filing. It said Musk hopes to complete the merger “provided that the Delaware Chancery Court immediately suspends the litigation … and suspends the trial and all other related litigation pending a court closure or further order.” An offer to complete the deal is pending. Received debt financing from Musk.

Although Musk’s request would prevent the trial from starting as scheduled , but the suspension won’t prevent Twitter from resuming its lawsuit against Musk if he pulls out of the deal again.

Twitter slams new offer in ‘distrust’ Skeptical

Musk lost several key pretrial rulings in Delaware court. Judge Kathaleen McCormick, for example, rejected his request to postpone the trial until at least February 2023. “The reality is that delays can cause irreparable harm to sellers,” she said.

At the center of Musk’s attempt to pull out of the merger was his unsubstantiated claim that Twitter’s spam estimates were wrong. Twitter said less than 5% of its monetizable daily active users (mDAUs) were spam or disinformation, noting that Musk’s attempts to prove the estimate wrong relied on a tool that put his Own accounts marked as possible bots. Twitter also argued that Musk had no right to back out of the deal based on the spam data, saying he “waived all due diligence” when he offered Twitter a “take it or leave it” offer.

Twitter reportedly won’t immediately take issue with the horse Sk’s new proposal takes action and hopes the court will oversee the process if the merger does proceed. “Twitter is considering whether to accept the offer and will not act for at least another day,” The Washington Post reported. “Due to a great deal of distrust on both sides, Twitter leaders questioned whether the letter represented legitimate manipulation, the person said.” “The court held an emergency hearing with both parties on Tuesday morning,” the Post also wrote. “One of the people said Musk was willing to drop the case, but Twitter wanted assurance that the court would oversee the process because of distrust. Another hearing will be held later Tuesday.”



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