Musk Set to Follow Through with Original Twitter Deal

Per a report, Tesla billionaire Elon Musk has plans to move forward with the initial $44B Twitter purchase. Amid a standing lawsuit, Musk could be set to purchase the leading social media platform at $54.20 for each share once again. 

Sources Claim Elon Musk Revisits Twitter Deal

Anonymous sources close to the matter claim Musk communicated the proposal via a letter to the company. After news of the proposal broke, Twitter shares began to climb. The stocks rose 12.67% over the past day hitting $49 before the company halted trading due to volatility. 

Notably, the proposal comes just two weeks before Musk’s high-profile trial with Twitter was set to commence. However, this reportedly puts a stop to the legal battle which has been gathering steam for months. Musk’s troubles with Twitter go back to April this year when he agreed to purchase the company for over $40 billion.

Bots are the Main Issue, Says Musk

However, the SpaceX CEO later backed out of the deal. Musk cited Twitter’s failure to provide accurate data about the number of bots on the platform as his main reason. Bots are automated accounts that imitate real user activity and can affect advertising rates as well as the overall valuation of the platform. 

At the time, Twitter claimed about 5% of the total daily active users comprised fake accounts, while Musk placed the figure around 20%. In the past, Musk has described crypto bots as the “single most annoying problem on Twitter.” 

After making his Twitter offer, Musk expressed his intention to eliminate all spam and bot accounts on Twitter alongside other changes. Notably, a text exchange from March emerged last week as part of the litigation process. The messages between Musk and ex-Twitter CEO Jack Dorsey show the Tesla founder sharing plans to establish account verification measures to tackle spam. 

Details of the Twitter-Musk Legal Case

Musk’s termination of the deal prompted Twitter’s leadership to file a suit in the hopes of forcing the billionaire to follow through. The platform denied Musk’s claims instead blaming Musk’s withdrawal on his reluctance to pay the agreed price. In their suit, Twitter stated that the deal no longer served Musk’s “personal interests.” 

The platform alleged that the Tesla CEO was going back on the deal since the stock market had taken a downturn. Twitter also blamed its lower-than-expected Q2 earnings on Musk’s issues with the company over the deal.

Musk slammed the platform with a countersuit claiming Twitter had violated the terms of their deal by withholding information about the bots. The pending trial required the billionaire’s legal team to provide conclusive evidence supporting the allegations but they have not been able to.

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In the weeks leading up to the trial, several commentators have shared their thoughts. Many believe Musk is unlikely to win the case, especially without the relevant data. Reports also noted that the presiding judge Kathaleen St. J. McCormick had favored Twitter multiple times during the pretrial rulings.

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