Elon Musk Twitter deal back on in surprise U-turn

The deal between Twitter and Elon Musk is back on the table.

The world’s richest man made an offer to buy the social media platform for $54.20 a share, an offer Twitter accepted, USA Today reported.

“We received the letter from the Musk parties, which they have filed with the SEC,” Twitter said in a statement Tuesday. “The intention of the Company is to close the transaction at $54.20 per share.”

Twitter issued this statement about today's news: 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.
— Twitter Investor Relations (@TwitterIR) October 4, 2022

Musk sent his proposal in a letter to the platform two weeks before Twitter’s lawsuit seeking to force him to proceed with the deal was scheduled to go to trial in Delaware Chancery Court. Musk was scheduled to be deposed in the case later this week.

Musk said he would go forward with the deal if the Delaware Chancery Court agreed to “enter an immediate stay.”

Twitter filed a lawsuit after the Tesla founder tried to call off his $44 billion deal to purchase the company in July, according to a copy of the letter from Musk’s legal team that Twitter included in a regulatory filing Tuesday.

Twitter shares went up 22% on the news after trading paused.

Analysts said Musk’s offer was a sign that he faced challenges in court. He had already lost several legal battles over how much information Twitter had to disclose. However, analysts did not rule out other plot twists.

“One thing that seems certain in this saga, where we’ve witnessed many twists and turns, is that nothing appears predictable,” said Scott Kessler, global sector lead for technology media and telecommunications at Third Bridge.

Following news of the deal, Musk took to Twitter to announce, “buying Twitter is an accelerant to creating X, the everything app.”