Twitter shares soared Tuesday on a report that Elon Musk is proposing to acquire the social media giant for his original offer of $54.20 per share.
LINK: The company originally accepted Musk's $44 billion offer in April. However, the billionaire notified Twitter in July that he was planning to terminate the deal after claiming the company breached its obligations by misrepresenting the number of spam and fake accounts on the platform. Twitter maintains that spam and fake accounts make up less than 5% of its total users.
In response, Twitter filed a lawsuit against Musk accusing him of refusing to honor his obligations under the agreement because "the deal he signed no longer serves his personal interests." Musk has since filed a countersuit, which was amended last month to include allegations from whistleblower and Twitter's former security chief Peiter "Mudge" Zatko.
The news of Musk's latest proposal comes as the two parties have been gearing up for a legal showdown in the Delaware Court of Chancery beginning Oct. 17. Representatives for Musk and Twitter did not immediately return FOX Business' request for comment.
Wedbush analyst Daniel Ives called the proposal a "smart move," but added that it is a "clear sign" that Musk recognized his chances of winning in Delaware were unlikely.
"Being forced to do the deal after a long and ugly court battle in Delaware was not an ideal scenario and instead accepting this path and moving forward with the deal will save a massive legal headache," Ives wrote in a note to clients on Tuesday. "We see minimal regulatory risk in this deal although now Musk owning the Twitter platform will cause a firestorm of worries and questions looking ahead among users and the Beltway."
The deal has already received approval from Twitter's shareholders.
LINK: The company originally accepted Musk's $44 billion offer in April. However, the billionaire notified Twitter in July that he was planning to terminate the deal after claiming the company breached its obligations by misrepresenting the number of spam and fake accounts on the platform. Twitter maintains that spam and fake accounts make up less than 5% of its total users.
In response, Twitter filed a lawsuit against Musk accusing him of refusing to honor his obligations under the agreement because "the deal he signed no longer serves his personal interests." Musk has since filed a countersuit, which was amended last month to include allegations from whistleblower and Twitter's former security chief Peiter "Mudge" Zatko.
The news of Musk's latest proposal comes as the two parties have been gearing up for a legal showdown in the Delaware Court of Chancery beginning Oct. 17. Representatives for Musk and Twitter did not immediately return FOX Business' request for comment.
Wedbush analyst Daniel Ives called the proposal a "smart move," but added that it is a "clear sign" that Musk recognized his chances of winning in Delaware were unlikely.
"Being forced to do the deal after a long and ugly court battle in Delaware was not an ideal scenario and instead accepting this path and moving forward with the deal will save a massive legal headache," Ives wrote in a note to clients on Tuesday. "We see minimal regulatory risk in this deal although now Musk owning the Twitter platform will cause a firestorm of worries and questions looking ahead among users and the Beltway."
The deal has already received approval from Twitter's shareholders.
