He Said He Would Abandon It... "Elon Musk, Facing Trial, Proceeds with Twitter Acquisition as Originally Planned"

[Image source=Reuters Yonhap News]

[Asia Economy New York=Special Correspondent Joselgina] Elon Musk, Tesla CEO, who had declared the termination of the Twitter acquisition contract and planned to proceed with a lawsuit, has decided to proceed with the original contract again, according to local media including Bloomberg and The Wall Street Journal (WSJ) on the 4th (local time).

According to reports, Musk, who was about to face a legal battle with Twitter, decided to pursue the acquisition at the original contract price of $54.20 per share. Accordingly, Musk's legal team sent a letter containing this information to Twitter and the Delaware Court of Chancery the day before. This reversal came three months after Musk unilaterally declared the termination of the acquisition contract in July.

In particular, this decision drew attention as it was made ahead of the lawsuit between Musk and Twitter. Earlier, Twitter filed a lawsuit to enforce the contract after Musk unilaterally terminated the agreement. The court had scheduled a related trial for five days starting on the 17th.

Locally, it is evaluated that Musk reversed his decision to proceed with the acquisition again because he judged that his chances of winning the trial were low. Previously, Musk's side had claimed that Twitter did not provide sufficient information about fake accounts, which constituted a breach of the 'Material Adverse Effect' clause, a reason for contract termination.

Bloomberg reported, "Musk may have judged that the probability of winning the trial was too low. From the beginning, legal experts expected Twitter to win the legal battle," adding, "It is very unusual to propose a deal under the original terms just before the trial." WSJ reported, "If an agreement is reached, Twitter and Musk can avoid the costly trial that was about to begin."

Following the news that Musk decided to proceed with the Twitter acquisition again, Twitter's stock price soared on the New York Stock Exchange and trading was halted. As of 12:13 PM Eastern Time, Twitter's stock price surged nearly 13% compared to the previous close, reaching $47.93.

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