The social network Twitter has accepted Elon Musk's offer to acquire it for $44 billion. The deal is expected to be closed within a few weeks.
A spokesperson for the company said it intends to close the deal at $54.20 per share.
Earlier, Musk's lawyers sent a letter to Twitter confirming that he planned to buy the company at the original offer price.
The businessman himself tried to refuse the deal, claiming that the company hides the statistics of bots on the social network. Twitter sued.
Judge Catalyn McCormick denied Musk's request for a stay of the trial. Bloomberg sources said that now the entrepreneur fears a legal victory for Twitter. Earlier, the social network and the US Securities and Exchange Commission (SEC) confirmed Musk's plans to complete the purchase of the social network, subject to the termination of the lawsuit.
Amid reports of a purchase, Twitter's share price began to rise. Thus, the cost of one share jumped by 13% to $47.93, and trading closed at $52.
The social network itself may insist on continuing the trial. The meeting is scheduled for October 17th.
“I don’t think Twitter will drop the date of the trial just because of Musk’s words — it will need more guarantees to close the deal,” said Brooklyn Law School professor Andrew Jennings.
On April 25, Twitter announced that it had accepted Musk's offer to sell the company to a private individual for $44 billion. However, on May 13, Musk announced the suspension of the purchase, and on July 8 he canceled the deal.
On July 12, Twitter announced the registration of a statement in the Delaware Chancery Court against Elon Musk. The main reason for filing a lawsuit is the need to force him to fulfill his legal obligations.
On September 13, at the annual meeting, Twitter shareholders approved the deal to sell the social network to Musk.
Meanwhile, the Delaware Court of Chancery found that ex-Twitter security chief Peter Zatko was able to contact Musk in May of this year under an anonymous account via Proton Mail to tell him about a certain number of bots on the platform. After that, the businessman suspended the deal. Musk's lawyers and Zatko himself refute the fact of such communication. Musk denies involvement in obtaining insider information about this from employees of the social network. However, he never provided any expertly verified evidence of a large number of fake accounts on the platform.
On October 4, the businessman withdrew his refusal to buy the social network and again agreed to buy Twitter for $44 billion.
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