Elon Musk brought Twitter for $54.20 per share in April, a $44 billion cash transaction. Buyer’s remorse soon followed (opens in new tab). After months of legal wrangling (and millions more spent on lawyers), Elon Musk plans to buy Twitter for $54.20 per share.
Twitter said it “received the letter from the Musk parties which they have filed with the SEC” and that it plans to “close the transaction at $54.20 per share.”
Twitter issued this statement about today's news: We received the letter from the Musk parties which they have filed with the SEC. The intention of the Company is to close the transaction at $54.20 per share.
— Twitter Investor Relations (@TwitterIR) October 4, 2022
Musk filed his intention to buy with the SEC, locking in the sale.
Twitter and Musk were headed to court before this filing (Via TechCrunch). Musk offered to buy Twitter, then backed out. He believed 20% of Twitter users were bots. Musk provided no proof. Meanwhile, Twitter claimed that bots only accounted for a maximum of 5% of its users, which is still a lot but not nearly as bad as Musk’s claims.
Twitter could have sued Musk to force him to finish the acquisition under the original terms. Musk was planning to go to court today to try to get out. Something changed due of this SEC filing. Musk had offered $54.20 per share before the court upheaval. Twitter wins in a spectacular about-face.
Twitter’s stock price rose, as expected. At press time, it was $51.88, up from $43.84 yesterday.