The world’s richest man, Elon Musk, is ready to move forward with the transaction on the agreed terms after months of legal drama, Musk’s attorneys confirmed in a court filing on Tuesday.

The filing came after a Bloomberg report on Tuesday that the Tesla CEO had written to Twitter offering to close the deal at the original price of $54.20 per share. As a result, trading in the company’s stock was temporarily suspended as the price soared more than 12% in New York. The shares closed up 22.2% at $52.

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The Messiest Tech Deal of All Time

On October 17, Musk and Twitter were scheduled to square off in court. Several legal commentators had previously warned that Musk had little chance of succeeding in his attempt to scuttle the agreement.

The notice was submitted by Musk’s attorneys to the Delaware chancery court, which was in charge of the trial, and stated, in part, “We write to notify you that the Musk parties intend to proceed to close of the transaction.” The filing further stated that two prerequisites must be met: the Delaware trial must be postponed, and debt financing must be obtained. Twitter responded to Musk’s about-face by saying: “The company intends to close the transaction at $54.20,” but it omitted any further information.

The proposal was made to Twitter’s attorneys throughout the night on Monday, according to the Wall Street Journal, which also noted that Musk had submitted a letter to the Delaware chancery court ahead of a Tuesday emergency hearing on the deal. Musk appeared to be “finally listening to his lawyers,” according to Anat Alon-Beck, a law professor at Case Western Reserve University in Ohio. On Thursday and Friday, Musk was scheduled to answer questions from Twitter attorneys while under oath as part of the trial’s preparations in Delaware. Alon-Beck asserted that Musk “has no defense on trial” and that it would be foolish of him “not at least try to buy the company now and avoid [a deposition]”. Alon-Beck said that even though Musk’s filing has eliminated the upcoming trial, the sale process is still ongoing. It’s not as though this will be resolved by tomorrow, she said. The deal still needs to be approved by all parties, signed, and completed, and Musk still needs to find the money to close it. Musk stated in a tweet on Tuesday that purchasing the business would “accelerate” the process of “creating X, the everything app” by up to five years. aMusk’s initial justification for withdrawing his offer to purchase the business was that it had underestimated the number of spam or bot accounts using its platform.

Peter “Mudge” Zatko, who was fired as Twitter’s head of security this year, had alleged that the company was “grossly negligent in several areas of information security,” and the Delaware judge overseeing the case last month agreed to let Musk include those allegations in his lawsuit. Zatko was fired from Twitter this year.

Zatko’s claims are “riddled with inconsistencies and inaccuracies and lack important context,” according to Twitter, which denied that it incorrectly counted the number of spam accounts and annoying accounts not run by human users.
Musk’s actions have drawn harsh criticism on Twitter as well. It claimed Musk’s actions were “a model of bad faith” in its lawsuit, which demanded he close the deal on the agreed terms and accused him of treating the sale process as an “extended joke.”

A New And Uncertain Era For Twitter

This week, text messages between Musk and others, including Twitter CEO Parag Agrawal, were made public thanks to a court filing in Delaware. They demonstrated how the friendship between Agrawal and Musk quickly deteriorated this year, with the Tesla CEO tweeting, “What did you get done this week?” Podcaster Joe Rogan asked Elon Musk in another text message if he would “liberate Twitter from the censorship happy mob.”

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