Elon Musk will proceed with bid to buy Twitter for $44 billion after battle over attempt to abort sale

elon musk will proceed with bid to buy twitter for 44 billion after battle over attempt to abort sale

Elon Musk is to proceed with a deal to buy Twitter for $44 billion, after months of bitter legal disputes.

The US-based Tesla and SpaceX billionaire, increasingly known for his outspoken views and business controversies, confirmed in a legal letter on Tuesday that he would proceed with the deal first agreed in April, which would see him acquire Twitter at $54.20 a share – valuing the company around $44 billion.

Twitter confirmed it intended to proceed with the transaction, saying in a statement: “We received the letter from the Musk parties… the intention of the Company is to close the transaction at $54.20 per share.”

The surprise reversal comes two weeks before Mr Musk and Twitter were due in court over his attempts to abort the purchase, having accused Twitter of failing to provide him with adequate data relating to fake and spam accounts on the platform.

The U-turn, first reported by Bloomberg, sent shares of Twitter soaring and those of Tesla plummeting, as questions linger over how the deal will be financed.

Mr Musk is estimated to be worth about $200 billion, but much of his net worth is tied up in his stake in Tesla. An initial financing plan agreed upon earlier this year would have seen him take out a loan against his Tesla shares as well as additional equity financing and backing from outside investors, though he later made changes to the financing.

Late on Tuesday, Mr Musk tweeted: “Buying Twitter is an accelerant to creating X, the everything app.”

October 4, 2022

A prolific user of Twitter, Mr Musk has previously espoused strong criticism of moderation policies on the platform, suggesting that only content that is illegal – rather than simply abusive or misleading – should be taken down.

Mr Musk, who said in May that he intends to vote Republican, has disavowed “left-wing” Democrats and promised to reverse the decision to permanently ban Donald Trump from the platform – which came after years of what Twitter said were violations of its rules on hate speech and misinformation.

Twitter had sued Mr Musk in July after he tried to back out of the deal, and a trial at Delaware Chancery Court was set to begin on 17 October. Mr Musk has now proposed the parties “enter an immediate stay” of the case “and adjourn the trial and all other” Advertisement. proceedings.

Text messages published in the run-up to the trial revealed that Mr Musk had suggested that “someone who has a savvy cultural/political view” should be placed in charge of moderation on the platform, fuelling fears it could become politicised.

Mr Musk himself engaged in a Twitter spat with Ukraine’s president Volodymyr Zelensky on Monday after he suggested the nation should surrender its claim to territories in the east and south of the country if fresh “independent” ballots show residents wish to be part of Russia.

Mr Zelenskyand Ukrainian officals criticised Mr Musk, who was accused of parroting Kremlin rhetoric as Russia seeks to illegally annex several Ukrainian regions seized through months of brutal and bloody conflict.

Mr Musk claimed: “I still very much support Ukraine, but am convinced that massive escalation of the war will cause great harm to Ukraine and possibly the world.”

Inews..

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