Elon Musk proposed a deal to Twitter, which could end the legal battle between the billionaire founder and the social media giant.
According to two sources, Musk would be able to buy Twitter for $54.20 ($83.76 per share) if he agrees to pay it in April. To speak out.
Elon Musk wants Twitter to be bought.He is credited with the following:AP
This deal could be made after months of controversy for Twitter that led to a drop in share price, demoralization for employees, and fears for advertisers.
Twitter would consider the agreement at the original price a win. It reached an agreement to buy the company from Musk for $44 billion. Musk stated in July that he would not be completing the acquisition as he believes the Twitter service is overrun with spam.
It wasn’t clear at the time if Twitter planned to accept Musk’s offer. Musk could view this as a negotiating tactic to avoid any legal action against him on Twitter. The news brought about a 12 percent increase in shares in the social media company before trading was stopped.
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Although the agreement will end uncertainty around Twitter’s future, Musk has plans for the company. The original deal was approved by shareholders in September. Musk had told investors, before trying to backtrack, that the company could reach 500m daily users and $13.2billion in revenue by 2025.
Twitter sued Musk in July to stop the acquisition being completed. Musk was due to appear before a Delaware courtroom in August. In legal filings, the company claimed that Musk’s reasons for cancelling the deal were smokescreens and suggested that he simply wanted to see his fortune drop after stock market declines.
Musk claimed that Twitter had likely decreased the amount of spam it hosts, making the company less attractive than originally believed. Musk also mentioned whistleblower claims from a former Twitter executive that the company had misled regulators regarding its security practices as a reason for exiting the deal.
Originally published at Brisbane News Station
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