Bloomberg first reported that Twitter received a letter from Musk’s team on Tuesday with the news that the Tesla and SpaceX CEO wanted to get the deal back on track. “We received the letter from the Musk parties which they have filed with the SEC,” a Twitter spokesperson confirmed to TechCrunch. “The intention of the Company is to close the transaction at $54.20 per share.”
The Tesla and SpaceX CEO was slated to face off against Twitter in a trial beginning in less than two weeks. Musk and his team had alleged that Twitter was in breach of their deal by lying about the percentage of bots on the platform. But after months of back-and-forth, Musk hasn’t been able to conjure conclusive evidence that Twitter had shared false or misleading information with him.
Twitter has long claimed that only about 5% of monetizable daily active users are fake accounts, but Musk has alleged on Twitter that this number might be closer to 20%. But during a hearing last week, Twitter’s lawyers said that the data scientists that Musk himself hired did not find this to be true. One firm, Cyabra, said that Twitter could have up to 11% fake accounts or bots, while CounterAction claimed that 5.3% of Twitter users are bots.
Since Musk’s proposal to follow through on the deal went public, Twitter shares increased by 16%, reaching about $49 per share; now, Twitter has halted trading. When Musk initially made his acquisition offer in April, the stock traded at nearly $51 before dropping to about $36 in July, when he said he would terminate the deal.
Update: Musk’s change of heart appears to be official. His legal team sent a letter to the SEC confirming Musk’s intentions to follow through on the deal’s original terms. Musk’s one stipulation? That the court “enter an immediate stay of the action, Twitter vs. Musk, et al. and adjourn the trial and all other proceedings related thereto.”
Elon Musk proposes to follow through on Twitter deal, reports say by Amanda Silberling originally published on TechCrunch