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It was not immediately clear whether Twitter planned to accept his offer, which could be seen as a negotiating tactic by Mr. Musk to halt Twitter’s litigation against him. Shares in the social media company spiked almost 12 percent on the news, before a halt in trading.
While an agreement would signify an end to the uncertainty clouding Twitter’s immediate future, Mr. Musk’s plans for the company are uncertain. Shareholders voted in September to approve the original deal with Mr. Musk, who told investors before attempting to back out of the deal that by 2025, he could get the company to 500 million daily users and revenue of $13.2 billion.
Twitter sued Mr. Musk in July to force the completion of the acquisition, and was set for a showdown with the billionaire this month in a Delaware courtroom. The company argued in legal filings that Mr. Musk’s reasons for abandoning the deal were smoke screens, and suggested that he had simply hoped for a lower price after stock market declines had decreased his overall wealth.
Mr. Musk said Twitter had most likely undercounted the amount of spam on its platform, making the company less valuable than he had initially believed. He also cited whistle-blower claims from a former Twitter executive, who said the company had misled regulators about its security practices, as a reason to exit the deal.
Mr. Musk submitted a proposal to Twitter on Monday evening, a person familiar with the conversation said. The parties met in court on Tuesday to discuss the proposal. The offer was reported earlier by Bloomberg.
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