Billionaire Elon Musk appears to have once once more changed his mind regarding buying Twitter, and is now ready to go ahead with the social media platform’s acquisition.
In a letter to the company, Musk agreed to pay the price he had offered months earlier before trying to pull out of the deal.
The sudden decision comes just two weeks before the two parties are due to appear in court.
Twitter, which sued Musk to force him to go through with the acquisition, is seen as the stronger party in the case.
In the letter, Musk’s lawyers said he intends to move forward to complete the deal, pending receipt of funding and an end to the legal battle.
A Twitter spokesperson said the company received the letter, adding that “the company’s intent is to close the transaction at $54.20 per share” – the price Musk promised in April.
The announcement sent Twitter shares up more than 20% to more than $52 per share. But the value remained below the acquisition price, indicating that investors remained skeptical regarding the completion of the deal.
When Musk first revealed his plans to buy Twitter in a $44 billion deal, he said he “wanted to clean up the spam accounts on the platform and preserve it as a place for free speech.”
But the billionaire, a voracious Twitter user known for his impulsive style, declined the purchase following only a few weeks, citing concerns that the number of fake accounts on the platform was higher than Twitter officials claimed.
photo released, Getty Images
Twitter executives denied the accusations, saying that Musk, the world’s richest person with a net worth of more than $220 billion, wanted to abandon the deal because he was concerned regarding the price.
The volatility stems from a sharp decline in the value of technology stocks, including Tesla, Musk’s electric car company that is the basis of much of his fortune.
The two sides face off in a protracted court battle, and the trial was due to begin on October 17, involving private messages and public wrangling on Twitter.
In one of those conversations, Musk responded to Twitter chief Parag Agrawal with an emoji referring to “poo”.
The preparation for the trial required the involvement of a number of the biggest names in the field of technology, with lawyers for the two companies asking for contacts regarding the deal.
Some observers, who were surprised by the development, wondered whether the latest development was a tangible offer or an attempt to stall.
On Twitter, which has been in turmoil since Musk first showed an interest in the company, employees told the BBC that “their bosses were initially silent, even as the report went viral”.
Investors were skeptical that the acquisition would go ahead, especially since Musk was seen as offering a high price to a company struggling to attract users and grow.
