Elon Musk says he will continue with acquisitions if the lawsuit is dropped

Elon Musk submitted a proposal to Twitter stating that he was willing to proceed with his acquisition at the original price of $44 billion according to a Tuesday letter filed by Musk’s lawyer with the Securities and Exchange Commission.

Bloomberg first reported the news. Twitter shares rose as high as 22% Tuesday, after a long halt to trading. Musk could not be reached immediately for comment.

If the Delaware court hearing Twitter’s lawsuit against Musk stops the case immediately, Musk stated in his Monday proposal to Twitter.

Twitter stated in a statement that it received the Musk parties’ letter, which was filed with the SEC. The Company intends to close the transaction at $54.20 a share.

The proposal could bring an end to a long-running dispute between the parties that had included a Delaware lawsuit set for trial next month.

“This is a clear indication that Musk knew heading into Delaware Court that the odds of winning vs. Twitter Board was very unlikely and that this $44 billion deal would be completed one way or the other,” Dan Ives, Wedbush Securities’ client service manager, said Tuesday in a note to clients following the report.

Some Twitter employees have felt the uncertainty.

One Twitter employee stated that “At the point, just do it” because they weren’t authorized to speak publicly.

Rumman Chowdhury was Twitter’s director for machine learning ethics, transparency, and accountability. He also tweeted similar frustrations.

She tweeted “Living in the plot of succession” referring to the HBO series.

Musk expressed his initial interest in Twitter when he announced that he was now the largest shareholder of the company; he was also due to sit on the board of directors.

Musk stated that Musk was interested in the company because he wanted it to “adhere to free speech principles.” Musk expressed an interest in restoring former President Donald Trump on the platform.

Jack Dorsey (the former CEO of Twitter) endorsed Musk’s participation in the social media platform. He said that Musk could “return from Wall Street.”

Dorsey tweeted, “I trust his mission of expanding the light of consciousness.”

Musk soon decided to buy Twitter and make it private. Musk offered $54.20 per share or $44 billion on April 14. Twitter initially resisted and adopted a “poison pill policy” that would have reduced the share price if Musk tried to buy more shares on the open market. Analysts also had questions about Musk’s plans for the platform. They considered Musk’s price too low.

The decline in shares of other tech companies was accompanied by volatility in the wider market. Musk made firm commitments to Wall Street lenders and investors to finance the deal. Twitter accepted Musk’s offer on April 25th. Twitter and Musk issued a joint statement on the same day, extolling the agreement. Musk stated, “Twitter is tremendously potential — I look forwards to working with the company, the community of users, and unlocking it.”

Musk announced that the deal was “on Hold” after three weeks. He did this by tweeting, however, to enquire further about how many spam or fake accounts were involved. Musk claimed that Twitter had violated the deal when it refused to answer his requests regarding the spam accounts issue. He was trying to end the agreement.

Twitter stated that the accusation was false and that it would close the agreement between the companies.

Twitter sued Musk in Delaware Court — the U.S. primary venue for deciding corporate disputes — to enforce the transaction.

“Having staged a public spectacle to place Twitter in play and having proposed and signed a seller-friendly merger agreement, Musk believes he — unlike any other party subject to Delaware law — can change his mind, trash and disrupt the company’s operations, destroy stockholder value and walk away,” Twitter stated in its complaint.

Musk claimed that Twitter’s long-held estimate that less than 5 percent of its accounts were fake was inaccurate. This led to Musk ending the deal. Musk eventually filed a countersuit against Twitter accusing them of fraud. Twitter denied the charge.

This set the stage for October’s trial. The sides have been arguing about the details of the showdown since then. This includes the date and the type of documents and communications that could be requested.

A whistleblower, who accused Twitter of security breaches, added complexity to the situation. Musk sought to include that accusation in his evidence against Twitter. Twitter attempted to stop this development but was unsuccessful.

Musk, however, did not delay the trial.

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