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For how much money will Elon Musk buy Twitter and what is the company’s price?

Shares have been suspended after reports emerged that the deal will happen, at the agreed price set back in April.

Update:
Elon Musk's Twitter profile is seen on a smartphone placed on printed Twitter logos in this picture illustration taken April 28, 2022.
DADO RUVICREUTERS

Back in April, billionaireElon Musk offered to purchase the entirety of shares in Twitter at a price of $54.20 per share, which represented a 38 percent premium on top of Twitter’s stock price as of the 1 April close. That was the last day of trading before Musk’s 9 percent share in the company was revealed.

In total this was to cost around $44 billion.

This set in motion a long saga of events that could have culminated in a lengthy legal battle. However, according to a number of news reports, the deal is back on.

Twitter’s stock rose 12 percent on the news that the deal is now likely to go ahead. Shares are no logner being sold

A deal no longer at risk?

It was thought Musk was to pull out of the deal and an upcoming legal battle loomed. Twitter was aiming to force Musk to complete the purchase while Musk argued that Twitter withheld information from him that jeopardised his interest in the business.

Musk’s lawyers claimed the lack of clarity in the number of bot accounts breached of the information rights agreed under the merger agreement. In a letter sent to Twitter, Musk’s lawyers claimed that the Tesla and SpaceX CEO had repeatedly asked for the information so he could evaluate the number of fake accounts.

This is a clear material breach of Twitter’s obligations under the merger agreement and Mr. Musk reserves all rights resulting therefrom, including his right not to consummate the transaction and his right to terminate the merger agreement,” the letter says.

Musk “is clearly entitled to the requested data to enable him to prepare for transitioning Twitter’s business to his ownership and to facilitate his transaction financing,” the lawyers continued.

Twitter sued Musk for these actions.

“Musk’s exit strategy is a model of hypocrisy,” the lawsuit said, accusing the billionaire of making “bad faith” arguments against Twitter and carrying out “public and misleading attacks” on the company. Twitter also says that Musk “conjured” up a supposed breach of contract.