Twitter Share Prices Soar As Musk Once Again Offers To Purchase Company

According to a regulatory filing on Tuesday, Elon Musk has renewed his offer to purchase Twitter for $54.20 per share.

This share price puts the purchase amount at $44 billion, which is the same price Musk offered Twitter back in April. The deal was publicly announced on April 25.

However, the deal appeared to break down during due diligence, as Musk complained about the company’s inability to tell him the number of bot accounts on the social media platform. In July, he informed Twitter that he intended to terminate the agreement.

In text messages revealed during the subsequent lawsuit, Musk expounded on his complaints with Twitter to Morgan Stanley Director Michael Grimes.

“An extremely fundamental due diligence item is understanding exactly how Twitter confirms that 95% of their daily active users are both real people and not double counted,” he wrote to Grimes. “They couldn’t answer that on Friday, which is insane.”

“If that number is 50% or lower, which is what I would guess based on my feed, then they have been fundamentally misrepresenting the value of Twitter to advertisers and investors,” Musk continued. “To be super clear, this deal moves forward if it passes due diligence, but obviously not if there are massive gaping issues.”

Twitter did not believe Musk could back out of the deal on that basis, and filed a lawsuit to force him to go through with the purchase. The trial was set to begin on Oct. 17 in Delaware Chancery Court.

Then on Tuesday, news broke that Musk had changed course, sending a letter of intent to Twitter to purchase the company as part of a deal for them to drop the lawsuit.

Twitter acknowledged receipt of Musk’s letter.

“The intention of the Company is to close the transaction at $54.20 per share,” the company stated.

In the wake of the news, Twitter shares immediately soared, closing the day up more than 22 percent. Trading on Twitter stock was halted earlier on Tuesday when the news first broke that Musk intended to move forward with the purchase.