Twitter purchase: Elon Musk surrenders

IThere is a surprising turnaround in the dispute over the takeover of Twitter: Elon Musk has offered to buy the online platform at the originally agreed price. According to a statement to the SEC, he has sent a letter to the company. After months of tug-of-war, Twitter would therefore not have to make any concessions in the end. The company confirmed in a succinct statement that it had received Musk’s renewed offer, saying, “It is the company’s intention to complete this transaction.” Musk’s change of heart comes less than two weeks before a court case between him and Twitter was due to begin, and an affidavit from Musk was scheduled for this week. The showdown in court is now likely to be canceled.

Twitter’s share price rose more than 20 percent on Tuesday to just under $52 – not too far behind the agreed purchase price of $54.20 per share, which corresponds to a total price of $44 billion. The company initially gave no comment. As the Washington Post wrote, it wants to take at least one day to respond. There is a lot of suspicion on both sides, and Twitter leaders wonder if the letter could be a “legal maneuver”.

Musk’s concerns about “spam” or “fake” accounts

Musk and Twitter agreed to the acquisition in April. But after just a few weeks, the CEO of the electric car manufacturer Tesla doubts as to whether the transaction would come about. In July, he declared the takeover overturned and accused Twitter of violating clauses in the purchase agreement. He cited his concern about “spam” or “fake” Twitter accounts that aren’t owned by real users. Twitter says their share of published user numbers is less than 5 percent, Musk claims it could be significantly more.

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Twitter immediately sued Musk after announcing his withdrawal, accusing him of breach of contract. The company described this as a subterfuge and accused Musk of seeking an “escape route.” He wanted out of the contract because the environment on the capital markets had clouded over and the value of his stake in Tesla and thus his assets had shrunk significantly. Musk filed a counterclaim a little later, accusing Twitter of fraud.

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