Elon Musk would still buy the social media company Twitter, for the original purchase price of $44 billion, if the seller waives the litigation.
The billionaire businessman announced on Tuesday that he is offering a deal that would see him pay the purchase price negotiated earlier this year if Twitter abandons the litigation. Musk notified the social media company of his offer in a letter and also formally filed it with the US Securities and Exchange Commission.
The Tesla and SpaceX founders and CEOs made their proposal for an out-of-court settlement two weeks before the first court hearing of the action brought by Twitter for breach of the sales contract. With the legal process, the social media company wanted to force Elon Musk not to abandon his purchase intention and to pay the purchase price of 44 billion dollars.
In the businessman’s proposal, he stipulated that the business should receive debt financing, as well as that the court terminate the litigation.
In April of this year, Elon Musk signed the purchase agreement for 44 billion dollars for the San Francisco-based social media company. He tried to back out of the deal shortly after, citing that Twitter had withheld from him the actual number of fake and automated user accounts.
The company filed a lawsuit against Musk in July, demanding that he pay the negotiated purchase price.
On the news of Elon Musk’s agreement proposal, the price of the company’s shares jumped by about 13 percent, to $47.93, as a result of which trading in the papers was suspended on Tuesday afternoon on the New York Stock Exchange. However, this share price is still well below the $54.20 per share stipulated in the purchase agreement.