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Elon Musk has offered to proceed with his $44 billion buyout of Twitter, reversing course yet again, according to a proposal obtained by Bloomberg.
Why it matters: This could preempt a trial that had been scheduled for October, tied to Musk's efforts to walk away from his original acquisition agreement.
What to know: Musk reportedly is maintaining his $54.20 per share offer price, although it's not clear if he's requesting any other term changes. It remains possible that Twitter would reject Musk's proposal, were it to differ from the original merger agreement.
Twitter stock has been suspended from trading, after jumping more than 11% on the Bloomberg report to $47.93 per share.
On the docket: Musk's original argument for terminating the merger was that Twitter allegedly had undercounted the number of bots, or fake accounts on the platform. He later amended his complaint to include claims from a Twitter whistleblower that the company misled regulators about its efforts to reduce spam and protect Twitter from security threats.
One reading of the Bloomberg report is that Musk had lost confidence in his legal case, having already experienced a series of procedural losses in Delaware Chancery Court.
A Twitter spokesperson didn't yet return a request for comment, and neither the company nor Musk have addressed the report via tweet.
https://www.axios.com/2022/10/04/elon-musk-twitter-settlement
Why it matters: This could preempt a trial that had been scheduled for October, tied to Musk's efforts to walk away from his original acquisition agreement.
What to know: Musk reportedly is maintaining his $54.20 per share offer price, although it's not clear if he's requesting any other term changes. It remains possible that Twitter would reject Musk's proposal, were it to differ from the original merger agreement.
Twitter stock has been suspended from trading, after jumping more than 11% on the Bloomberg report to $47.93 per share.
On the docket: Musk's original argument for terminating the merger was that Twitter allegedly had undercounted the number of bots, or fake accounts on the platform. He later amended his complaint to include claims from a Twitter whistleblower that the company misled regulators about its efforts to reduce spam and protect Twitter from security threats.
One reading of the Bloomberg report is that Musk had lost confidence in his legal case, having already experienced a series of procedural losses in Delaware Chancery Court.
A Twitter spokesperson didn't yet return a request for comment, and neither the company nor Musk have addressed the report via tweet.
https://www.axios.com/2022/10/04/elon-musk-twitter-settlement
