Elon Musk Renews Plans to Buy Twitter for Originally Agreed Price

Elon Musk Renews Plans to Buy Twitter for Originally Agreed Price


In yet another reversal, Tesla and SpaceX CEO Elon Musk has again agreed to buy Twitter for $54.20 per share – as was initially planned.

Twitter shares climbed 18% in value after the news dropped, following a brief pause in trading.

  • As reported by Bloomberg, people familiar with the matter claimed that Musk renewed his offer in a letter to Twitter. They asked not to be identified, as they were discussing confidential information.
  • Musk initially offered to buy Twitter for $54.20 per share – roughly or $44 billion – back in April. He cited a desire to make Twitter a “digital town square” and better respect the principles of free speech.
  • He also vowed to cleanse the platform of its rampant spam and scam bot problem, which is especially common within the crypto community.
  • However, Musk later withdrew from the deal over fears that Twitter was misrepresenting the extent of its spam problem. The platform claimed in May that 95% of accounts were backed by real people.
  • After requesting verification of these statistics, Musk said in a July filing that Twitter failed to provide information that didn’t come with strings attached or other features that made the information “minimally useful”.
  • Despite Musk’s efforts, Twitter sued the billionaire shortly after to force him into following through. In fact, the original merger agreement included a provision that would let Twitter compel him to complete the deal.
  • Twitter later blamed Musk for contributing to shaky Q2 earnings numbers at the company by creating uncertainty around their deal in the first place.
  • As of 12:19 on Tuesday, Twitter’s stock traded for $47.93.
  • Last week, private messages Musk had shared with other billionaires – including Jack Dorsey – about his vision for Twitter emerged as part of his lawsuit with the company.

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