Twitter (NYSE: TWTR) has been halted for trading due to volatility this afternoon, following the report on Twitter by a Bloomberg journalist that Musk has proposed to proceed with the previously announced purchase of Twitter.
Musk has reportedly proposed to proceed with the transaction at the previously agreed upon price of $54.20 per share.
The decision follows a lengthy court process in which much of the details surrounding the previously proposed merger has come to light. Court documents released last week went so far as to include numerous conversations held by Musk on the matter with associates, such as how the thought of first buying the company potentially came to be, Musk’s initial move to take a seat on the board, and even how Jason Calacanis has reportedly “pledged his sword” to Musk.
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The proposed merger took to the courts after Musk attempted to back out of the deal – despite reaching a definitive agreement – after having conducted due diligence after documents were signed. At the time, he attempted to claim he was walking as a result of Twitter breaching the agreement by not revealing fake bot info. Twitter responded by proceeding with their end of the agreement, while forcing Musk to proceed. He then attempted to use details disclosed by a whistleblower in a second attempt to terminate the arrangement, while Twitter forged ahead and secured 98.6% approval from shareholders on the proposed deal.
UPDATE 3:20 PM EST: As per a filing just made by Musk, the proposal was sent via a letter to Twitter’s legal council. The proposal is “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.” The proposal also requires that the court adjourn the trial and any proceedings related to the transaction. The proposal was provided, “without admission of liability and without waiver of or prejudice to any of their rights.”
The announcement meanwhile follows a day after Musk was publicly eviscerated on Twitter after seemingly turning tides on the Ukraine-Russia conflict, wherein he began using several talking points used by pro-Kremlin factions.
The 180-degree turn in his public comments on the conflict have at least some people asking the big questions.
Twitter last traded at $47.93 on the NYSE.
Information for this briefing was found via the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
