People have been thrown for a loop time and time again with every news update about the Twitter vs. Elon Musk legal battle. It just won’t stop, as Musk once again said that he would buy the company.
If you’re getting all confused about how things have transpired, you don’t even have to be. You might as well forget that the whole legal battle happened since the Tesla Motors CEO will buy Twitter for the exact same price as previously agreed upon, which is $44 billion.
According to a tweet by @TwitterIR, they have received a letter from Musk’s side stating that they have already filed with the SEC, with the unchanged share price of $54.20 each.
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
Is Elon Musk Waiving the White Flag
There are no official statements as to why the tech billionaire has agreed once again to purchase the company, but it might be to avoid further legal actions that could lead to a very pricey trial, not to mention sowing doubt in investors’ minds.
This is a strong argument if you consider that Elon Musk is willing to purchase Twitter (again), with the initial agreement from April in mind, if Delaware Chancery Court agrees to waive the ongoing lawsuit and other related proceedings, according to Engadget.
Columbia law professor Eric Talley suggested that they might use an escrow account to put the entire purchase price in; that way, the account will simply be emptied when the tech billionaire decides to back out, acting as a safeguard.
Ann Lipton, a business law professor at Tulane University, stated that it was expected that they would settle before the deposition of Elon Musk. It might also mean that Twitter has a strong position on the case, as mentioned in The Verge.
One of the reasons why Elon Musk has finally agreed to the deal might be because of the screenshots of his conversations with the managing director of Musk’s family office. The recovered screenshots were added to the court filings which, for Twitter, might’ve been a game changer and a disadvantage for Musk’s legal team.
There are no announcements yet as to when the acquisition will become official, but it’s been reported that Twitter’s shareholders have already approved of the deal. The only decision that both sides are waiting for is from the Delaware Chancery Court.
X Marks the Spot
Elon Musk mentioned on his Twitter account that the purchase of Twitter could be an accelerant to creating X, which to his description, is an everything app. It is still not clear what that means, but based on the tech billionaire’s affinity for sharing his future plans with the world, we might hear about it soon enough.
Musk’s first achievement as an entrepreneur was creating an online bank site called X.com which then led to the creation of PayPal Holdings Inc. in 200 after merging with another company.
He has re-acquired the website domain and named it “X Holdings,” which would be the company that will hold Twitter, according to Morningstar.