Twitter Soars After Musk Agrees To Close Acquisition At Original Price

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by Tyler Durden
Tuesday, Oct 04, 2022 - 04:12 PM

Update: Here is the long-awaited letter (filed as a 13D) from Musk's lawyers at Skadden to Twitter's lawyer at Simpson Thatcher, confirming Musk's willingness to consummate the deal at its original stated terms, with just one potential out: the offer is pending receipt of debt financing proceeds (as well as the trial being adjourned). And so we are right back where we started in April, less some $50 million in legal fees.

Bloomberg is reporting, according to people familiar with the matter, that Elon Musk is proposing to buy Twitter Inc. for the original offer price of $54.20 a share, valuing the company at $44 billion.

The billionaire’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, the person said.

The FT reports that Twitter’s legal team is examining the letter sent by the billionaire entrepreneur, according to people briefed about the matter. It is not a given that the social media company will agree to proceed with the deal without guarantees on timing and certainty of closing, those people added.

The deal will include $13bn in debt from MS, and Musk paying $31bn in equity from his own (and friends, presumably) pockets.

Twitter shareholders voted Sept. 13 to accept the buyout offer as Musk submitted it. The company said at the time that 98.6% of the votes cast were in favor of the deal.

TWTR shares are soaring on the news (and halted for news pending)...

Notably TSLA shares are down on the news...

Musk had been trying for months to back out of his contract to acquire Twitter, signed in April.

What prompted the sudden fold? (Aside from the legal facts of the contract)

Did yesterday's battle with the blue-checks over Ukraine Peace piss Musk off enough to just say 'fuck it'?

Or was it news that he would be deposed on Thursday or Friday of this week? We wondered two weeks ago...

Either way, ...cue the mass resignations?

...and firings...