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Elon Musk is recommending that his initial offer of $54.20 per share to take Twitter Inc. private be implemented, according to Bloomberg News. This news caused the shares of the social media company to soar.
Before trading was paused for a second time, Twitter shares increased 12.7% to $47.93 while Tesla Inc, the electric vehicle firm that Musk is the CEO of, decreased by around 3%.
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According to Bloomberg anonymous sources, Musk made the suggestion in a letter to Twitter. Reuters’ inquiries for comment on Twitter and Musk’s attorneys were not immediately answered.
The announcement comes just days before a highly-anticipated legal battle between Musk and Twitter in Delaware’s Court of Chancery on October 17. Twitter was planning to ask the court to require Musk to consummate the deal at $54.20 per share.
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“This is a clear sign that Musk recognized heading into Delaware Court that the chances of winning vs. Twitter board was highly unlikely and this $44 billion deal was going to be completed one way or another,” Wedbush analyst Dan Ives wrote in a note after the news.
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Elon Musk agreed to purchase Twitter for $44 billion in April. But, within weeks, the world’s richest man claimed there were far more bot accounts than Twitter had estimated, which was fewer than 5% of all users.
(With agency inputs)
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