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Elon Musk offers to proceed with Twitter buyout deal

October 05, 2022 05:21 IST

In a surprise turn of events in the Twitter buyout saga, Tesla CEO Elon Musk has reportedly offered to proceed with his $44 billion purchase of the microblogging website.

Elon Musk

Photograph: Hannibal Hanschke/Reuters

Musk is proposing to continue with $54.20 per share to buy Twitter, Reuters news agency reported citing Bloomberg News.

After the news broke, Twitter's share price increased to 12.7 per cent before trading was stopped for the second time.


On the contrary, Tesla's shares dropped by about 3 per cent.

The Reuters report said the Tesla chief made the proposal in a letter to Twitter.

Musk has been locked in a bitter legal battle with Twitter since announcing in July this year that he was pulling the plug on his $44 billion purchase of the company following a complex, and months-long courtship.

Musk had cancelled the deal, claiming that he was misled by Twitter concerning the number of bot accounts on its platform.

These allegations were forthrightly rejected by the company.

The latest report on the Twitter buyout deal comes ahead of the Delaware Court hearing on October 17, where the two sides are expected to clash over the multi-billion dollar buyout deal.

"This is a clear sign that Musk recognized heading into Delaware Court that the chances of winning vs Twitter board was highly unlikely and this $44 billion deal was going to be completed one way or another," Reuters quoted Wedbush analyst Dan Ives as saying.

Earlier, Twitter had sought an order directing Tesla CEO to complete deal at $54.20 per share.

Meanwhile, Musk had called for the dismissal of a shareholder lawsuit against him for cancelling his deal and subpoenaing the social media company's former CEO.

Source: ANI