More details of Elon Musk’s reversal on his decision to go to trial against Twitter in Delaware Chancery Court to avoid buying the company have emerged. In a letter sent to the company, Musk’s lawyers indicate he will buy the social media company at the original price of $54.20 a share if his debt financing comes through and if the court enters an immediate stay of the lawsuit against him.
CNBC reports that a renewed deal for Elon Musk to purchase Twitter could be reached as soon as Friday with Twitter stock being halted following word of Musk’s plans to purchase the company going public. An SEC filing says Musk sent a letter to Twitter on Monday stating his intent to proceed with the transaction agreed upon on April 25, once a stay has been placed on all court proceedings. Musk will reportedly be buying twitter at $54.20 a share, Twitter shares closed up over 22 percent on the news.
A few weeks after Musk initially agreed to the deal in April, he attempted to back out and informed Twitter of his plans to officially terminate the agreement. Twitter sued Musk in an attempt to force him to go ahead with the purchase and the two sides were scheduled to go to trial in Delaware Chancery Court on October 17.
Musk claimed that Twitter misstated the number of “bots” on its service but Twitter claimed that Musk’s assertions of fraud were incorrect and based on a misunderstanding of the way the company tallies bots and fake accounts on the platform.
Musk also claimed that the company failed to provide him with the necessary data related to spam and bots, which Twitter also denied. Twitter claimed Musk was simply looking for any reason to back out of the deal after the company’s shares dropped alongside a broader market decline.
Below is the letter that Musk’s lawyer, Mike Ringler of Skadden Arps, sent to Twitter’s lawyers on October 3:
Gentlemen:
On behalf of X Holdings I, Inc., X Holdings II, Inc. and Elon R. Musk (the “Musk Parties”), we write to notify you that 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. (C.A. No. 202-0613-KSJM) (the “Action”) and adjourn the trial and all other proceedings related thereto pending such closing or further order of the Court.
The Musk Parties provide this notice without admission of liability and without waiver of or prejudice to any of their rights, including their right to assert the defenses and counterclaims pending in the Action, including in the event the Action is not stayed, Twitter fails or refuses to comply with its obligations under the April 25, 2022 Merger Agreement or if the transaction contemplated thereby otherwise fails to close
Read more at CNBC here.
Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship. Follow him on Twitter @LucasNolan