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Elon Musk agrees to buy Twitter for an initial discount of $ 44 billion – legal battle is coming to an end | Business newsletter


Elon Musk is planning to buy social media company Twitter for an initial offer.

The world’s richest man is proposing to buy back the platform for $54.20 per share, totaling $44 billion (£38.4 billion), after months of legal disputes.

Earlier, trading in Twitter stock was halted as shares spiked following reports that the deal was back in action. Shares were up nearly 13% at $47.93 before trading was halted.

In a letter to Twitter from Musk’s attorneys, he said: “Musk’s parties intend to proceed with closing the transaction … and adjourn the trial and all other proceedings.”

Twitter and Mr Musk will face court later this month as the company tries to keep Mr. Musk on his original offer, made in April.

“This is a clear sign that Musk has realized that when he arrives in Delaware Court, his chances of winning before the Twitter board are very slim,” said Dan Ives, an analyst at investment firm Wedbush. happens and this $44 billion deal will be closed one way or another.”

Musk, the Tesla CEO, wanted to back out of the agreement on the number of bot accounts on the platform.

He said that was higher than Twitter’s estimate of 5% of users, and claimed in July that it meant he could get out of the deal.

Bots are automated accounts whose existence can lead to an overestimate of the number of website users. Knowing the number of genuine users is important to ad sales and the overall value of the platform.

The takeover deal received approval from Twitter shareholders last month.

Read more:
Musk continues efforts to cancel Twitter deal after whistleblower’s statement
Musk subpoenas accuser and former Twitter exec as he tries to get out of the deal
Twitter sues Musk alleging he’s a ‘scam company’

More than $16 billion worth of Tesla shares were traded at midday New York time on Tuesday, leading to a drop in share value and a rebound in afternoon trading.

Mr Musk’s proposal could end months of tumultuous litigation that’s raging a standoff in Delaware’s Premier Court on October 17.

In the past, he has taken to Twitter to provoke controversy, such as proposing a peace plan for the Ukraine-Russia war, which has drawn swift condemnation from Ukraine’s president, Volodymyr Zelenskyy.

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‘I will reverse Trump’s Twitter ban’

Musk also said he would overturn former president Donald Trump’s ban on the site.

According to text messages that came to light during the litigation, Mr. Musk planned to change the platform by fighting spam by verifying accounts; hosting transfers and want to create Twitter subscriptions instead of relying on ads.

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