The agreement between the richest person in the world and one of the most popular social networking sites is back on the table.
Twitter has agreed to the offer from Elon Musk to be bought at $54.20 per share.
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Twitter issued a statement on Tuesday reading, “We received the letter from the Musk parties which they have filed with the SEC. The intention of the Company is to close the transaction at $54.20 per share.”
Two weeks prior to the Delaware Chancery Court trial date for its lawsuit attempting to compel Musk to move forward with the acquisition, Musk made the offer in a letter to Twitter. Musk was supposed to give a deposition in the case on Thursday.
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Musk stated that if the Delaware Chancery Court agreed to “enter an immediate stay,” he would proceed with the transaction.
According to a copy of the letter from Musk’s attorneys that Twitter published in a regulatory filing on Tuesday, Musk tried to cancel his $44 billion purchase of the firm in July, which is when Twitter filed the case.
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Following a brief suspension of trade, Twitter shares soared 22% on the announcement.
Analysts claimed that Musk’s offer was a recognition of his difficult legal situation. He had been unsuccessful in multiple court battles to limit the amount of information Twitter had to reveal. Analysts did not, however, rule out other story turns.
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According to Scott Kessler, global sector head for technology, media, and telecoms at Third Bridge, “One thing that seems certain in this saga, where we’ve witnessed many twists and turns, is that nothing appears predictable.”