Twitter has accepted Elon Musk’s offer buying the social media platform for $525.
“We received a letter from Musk’s parties that they wrote to the SEC,” Twitter said in a statement on Tuesday. “The Company’s goal is to close the transaction at $54.20 per share.”
Musk made the announcement in a tweet two weeks before his lawsuit to compel Musk to proceed with the deal was scheduled to go to trial in Delaware Chancery Court. Musk is scheduled to be arraigned in the case on Thursday.
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Musk said he would move forward with the deal if the Delaware Chancery Court agrees to “enter into a stay there.”
Twitter he sued after Musk tried to stop his $44 billion purchase of the company in July, according to a copy of a letter from Musk’s lawyers that Twitter included in Tuesday’s filing.
Twitter shares surged 22% on the news after trading was temporarily halted.
Analysts said the offer was an acknowledgment that Musk faced a long-running dispute in court. He had lost several challenges in court over the amount of information Twitter had to release. But analysts did not reject other policies.
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“One thing that seems to be true in this saga, where we’ve seen so many twists and turns, is that nothing seems out of control,” said Scott Kessler, global head of technology and mobile at Third Bridge.
Bloomberg first reported the news of Musk’s offer.