There might be some light at the end of the horizon—Elon Musk will indeed buy Twitter. In a letter sent to Twitter management, the Tesla CEO is proposing an end to the coming courtroom battle over his attempt to call off his takeover deal. In the letter, Musk also wants Twitter to accept his offer, at the original price of $54.20 per share as agreed.
The original plane, if both parties agree to it, would see Musk become Twitter’s new owner, and bring to an end months of accusations and counter-accusations.
It is looking clearer by the day that Musk and his legal team are not entirely confident of wining the legal tussle with Twitter. So, there is a possibility that Musk and his team may have sat down to take a second and critical look at the document, and arrived at a decision not to go ahead with the case in court.
According to a court filing as seen by Bloomberg, Musk was scheduled to answer to questions about the deal in Austin, Texas, on October 6-7, while Twitter CEO Parag Agrawal was scheduled to sit down for his disposition on Monday.
A cloud of uncertainty started hovering over Elon Musk’s Twitter acquisition back in May. When the Tesla CEO in a tweet said the deal had been temporarily put on ice for reasons bothering on “calculation that spam/fake accounts do indeed represent less than 5% of users.”
The source of concern for Musk is a section of Twitter filing about the number of false or spam accounts:
“We have performed an internal review of a sample of accounts and estimate that the average of false or spam accounts during the first quarter of 2022 represented fewer than 5% of our mDAU during the quarter. The false or spam accounts for a period represents the average of false or spam accounts in the samples during each monthly analysis period during the quarter. In making this determination, we applied significant judgment, so our estimation of false or spam accounts may not accurately represent the actual number of such accounts, and the actual number of false or spam accounts could be higher than we have estimated.”
The market as expected responded to the uncertainty surrounding the acquisition. On Friday, Twitter shares came crashing; dropping more than 10 percent at market open. The shares traded as much as 14 points below the nominal acquisition price of $54.20 a share.
