Elon Musk to proceed with Twitter purchase at $54.20 per share: Report [Update]

After months of back and forth Elon Musk is reportedly prepared to complete the deal to purchase Twitter at the originally proposed price of $54.20 per share. News of the potential deal comes from Bloomberg, which cited people familiar with the discussions, saying Musk made the offer in a letter to Twitter on Tuesday.

CNBC was also able to subsequently verify the offer, but none of the sources could be identified as they were not allowed to publicly discuss the ongoing confidential discussions.

UPDATE 9:45am PDT: According to a source the spoke with the Wall Street Journal, Musk’s “lawyers communicated the proposal to Twitter’s lawyers overnight Monday and filed a letter confidentially with the Delaware Chancery Court ahead of an emergency hearing on the matter scheduled for Tuesday.”

UPDATE 12:25pm PDT: The letter has now been confirmed in a filing with the Securities and Exchange Commission (SEC).

On October 3, 2022, the Reporting Person’s advisors sent a letter to Twitter (on the Reporting Person’s behalf) notifying Twitter that the Reporting Person intends to proceed to closing of the transaction contemplated by the April 25, 2022 Merger Agreement, on the terms and subject to the conditions set forth therein and pending receipt of the proceeds of the debt financing contemplated thereby, provided that the Delaware Chancery Court enter an immediate stay of the action, Twitter vs. Musk, et al. (C.A. No. 202-0613-KSJM), and adjourn the trial and all other proceedings related thereto pending such closing or further order of the court. The foregoing description of the letter is qualified in its entirety by reference to the full text of the letter, a copy of which is attached hereto as Exhibit S and incorporated herein by reference.

Following the report, shares of Twitter skyrocketed 15% to $47.93 before trading was halted.

The potential deal comes just a few weeks before both sides were scheduled to be in court. Earlier this summer Musk pulled out of the $44 billion deal citing irregularities in how Twitter reported the number of fake or spam accounts on the social media network.

Twitter then sued Musk to complete the deal, followed by Musk countersuing Twitter claiming they mislead investors.

The trial was set to begin on October 17, 2022 in Delaware Chancery Court. Musk was also scheduled for a deposition on October 6 and 7 ahead of the trial.

This is a developing story. Stay tuned for updates.

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