Why Elon Musk wants to buy Twitter after all

Elon Musk apparently wants to buy Twitter after all. After the Tesla CEO withdrew from his original offer, he initiated the new U-turn. This would allow both parties to settle their legal dispute over the billion-dollar business before the trial. But where did this change of heart come from?

Elon Musk has apparently changed his mind again. After months of back and forth, the Tesla CEO apparently wants to buy the short message service Twitter after all – at the originally agreed price of $54.20 per share.

That comes from one current writing Musk to the U.S. Securities and Exchange Commission (SEC). As a result, Twitter shares rose by around 20 percent. Twitter shared loudly Bloomberg said the company had received the letter and was still seeking a deal, without going into details.

Elon Musk and Twitter: An eternal back and forth

Background: After Elon Musk surprisingly acquired 9.2 percent of the shares in Twitter in April 2022, the company offered him a seat on the board. Musk was initially enthusiastic, only to change his mind about a week later.

The likely reason? A board position would have prohibited Musk from acquiring more than 14.9 percent of the company. The Tesla CEO then submitted an official purchase offer of 44 billion US dollars to the short message service, which Twitter also accepted. But it went downhill from there.

Because Musk formally terminated the agreement in July 2022. Official reason: The company would have withheld information and given false information about fake accounts. Twitter then filed a lawsuit to enforce the deal in court. Musk, in turn, responded with a counterclaim. Now another reversal is imminent.

Why does Elon Musk want to buy Twitter after all?

Because in the letter to the SEC It said that Elon Musk and his business partners now “intend to complete the transaction contemplated by the merger agreement dated April 25, 2022, on the terms set forth therein.”

However, the plan is subject to Musk submitting a necessary financing plan and the court deciding an “immediate stay of the proceedings.” But it is not clear where this renewed change of heart came from. However, there are indications.

So popped up recently shady text messages from Musk detailing how he dumped the deal. Against this background, Musk apparently no longer sees any good chances for the upcoming trial. Previously, numerous experts attested to Twitter’s legal advantages.

Will the deal go through?

The company has also provided Musk with additional data that may refute Musk’s allegations. The renewed intention to buy, meanwhile, seems to be based on a serious interest. Ann Lipton, a professor of business law at Tulane University, commented The Verge for example :

It’s hard to say to what extent Musk’s filing constitutes a commitment pending his court hearing with Twitter. But it would be odd if he went public with the SEC when he wasn’t really interested in a settlement — otherwise that would be serious securities fraud.

Twitter vs. Elon Musk: Judge calls for plan to settle legal dispute

Whether the deal will actually come about is still questionable. Because: For the legal dispute between Musk and Twitter, a trial is still scheduled for October 17, 2022. While Twitter signaled that the company was still seeking a deal, Musk wrote in his letter that the case should be dropped.

More experts go loud The Verge however, assumes that the short message service will not agree to this until the deal is wrapped up in court. As The Wall Street Journal reported, the responsible judge had meanwhile asked both parties to submit a plan to settle the legal dispute.

It remains to be seen whether this will succeed. At this point in time, however, it is still in the stars whether the deal will be completed. By April 2023 at the latest, however, there should be clarity. That’s when Musk’s financing agreements expire. If no agreement is reached by then, the matter is likely to fail.

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