Twitter and Elon Musk take a u-turn a few days prior to their court case on October 17 after Musk claims that he will proceed with the deal at the original negotiated price with conditions.
Billionaire and Tesla CEO, Elon Musk looks set to complete his $44 billion buyout of Twitter. Despite the alleged spam bots and fake accounts, Twitter now plans to proceed with the deal.
Elon Musk’s lawyers filed a notice with the Delaware Chancery court on Monday. The notice claimed that Musk intends to continue with the transaction.
Twitter and Musk make a U-turn
Twitter pulled an unexpected U-turn on the deal despite months of lawsuits and legal drama. Musk proposed to seal the deal on one condition.
Musk requests an immediate stay of action. He also reiterated on the adjournment of the trial and pending receipt of financing.
Twitter seems to comply with the demands issued by Elon Musk. Twitter intends to seal the deal at the initial $54.20 per share. In a Tweet, the Twitter Investor Relations group claimed they received a letter from Musk’s lawyers.
The firm also cited that they filed the letter with the Securities and Exchange Commission (SEC).
SpaceX and Tesla CEO already teased plans for Twitter after taking ownership. Through a tweet on October 5, Musk claimed that Twitter represents an accelerant.
He insisted that Twitter will help create X, the everything app. However, Musk is yet to reveal what the proposed X app will hold. He further added that Twitter probably accelerates X by 3 to 5 years but he could be wrong.
Twitter’s lawsuit
The announcement follows months of legal drama between Musk and Twitter. Earlier on, Musk tried to back out of the deal.
Musk cited Twitter’s lack of transparency around spam bots and fake accounts. The billionaire also requested Twitter to speak on the financial health of the business. The move by Elon Musk came days to the court date to settle the matter. The court case was set for October 17.
Previously, Musk suggested turning to blockchain technology to combat spam bots. By paying 0.1 Dogecoin to tweet or retweet, the strategy would work. Musk claims that users need to pay a tiny amount to register their message on the chain.
The process seeks to cut out the vast majority of spam bots and fake accounts. The process guarantees free speech with no throat to choke. He then added that blockchain-based Twitter seems unfeasible at the moment.
However, the announcement received an array of mixed reactions from the Twitter Community.
Reactions over Musk’s move
According to Dogecoin founder, Bill Markus, if Musk makes Twitter better then Twitter will be better. The founder, commonly known as Shibetoshi Nakamoto, revealed his view to his 1.7 million followers on Twitter.
Surprisingly, not all users seemed optimistic about Musk sealing the Twitter deal. Some claim that anyone who values Twitter would not want anything to do with Elon Musk.
With Elon Musk reversing course, Twitter will take a different trajectory. Musk seeks to revolutionize the social media platform by enabling free speech.
Only time will tell if the deal will ultimately go through.
