Tesla CEO Elon Musk, who announced the cancellation of the Twitter acquisition contract, decided to proceed with the contract again in three months.
On the 4th (local time), Musk reported this to the U.S. Securities and Exchange Commission (SEC). In a letter to Twitter, Musk demanded that the lawsuit over the cancellation of the acquisition contract be stopped, saying he would proceed with the $44 billion contract.
Twitter said in a separate statement that it plans to finalize the deal at $54.20 per share, the original acquisition price. Earlier in July, Musk unilaterally declared the cancellation of the acquisition contract. It was reversed in three months. News of Musk’s resumption of the Twitter acquisition contract was announced two weeks before a lawsuit filed by Twitter against Musk.
Musk agreed to acquire Twitter for $44 billion in April, but suddenly broke the contract on July 8, saying Twitter did not provide enough fake account-related information. In response, Twitter filed a lawsuit with the Delaware Equity Law Court. The court was scheduled to hold a five-day trial from the 17th.
Musk’s lawyers conveyed their intention to re-promote the acquisition to Twitter and the court the previous day, demanding a delay in the trial schedule and suspension of litigation. Foreign media reported that Musk seems to have chosen to re-promote the acquisition, judging that he is unlikely to win the trial.
Trading was once suspended as Twitter stock prices soared on the news of Musk’s re-promotion of Twitter’s acquisition. Twitter was suspended for $47.95 as it soared about 13% during the day. After resuming trading, the transaction closed 22.24% higher at $52.
