Elon musk has abandoned his legal battle with Twitter to focus on buying the app at the original price of $44 billion.
In a letter to Twitter, the wealthiest man in the world announced he’s back to purchasing the social media platform. Musk disclosed this in a filing which the US Securities and Exchange Commission is aware of.
Twitter initially dragged Tesla’s CEO to court after he backed out of the deal to buy the platform. The lawsuit was a move to force Elon Musk to get back into the agreement.
In the filing, Elon musk said that his team was ready to close the deal as long as the Delaware Chancery Court got rid of the lawsuit. He further mentioned that the new Twitter Deal would come with debt financing.
Many law experts say that Twitter may not just drop the lawsuit because Musk said so. Others noted that the new proposal and the u-turn Elon Musk is making might be delay tactics.
“I don’t think Twitter will give up its trial date on just Elon Musk’s words – it is going to need more certainty about closing,” Andrew Jennings, professor at Brooklyn Law School, said.
Musk Says Twitter is filled With Spam Bots
In his case, Elon Musk says Twitter is filled with different spam bots. The Tesla CEO said the social media platform has more spam bots than real humans.
After those holding Twitter shares had approved the sale of the company, Elon Musk brought up the issue of spam bots. He claimed that Twitter didn’t give accurate information regarding the number of spam bots on the platform.
Despite Elon Musk’s claims, law experts believed he would have lost out in that lawsuit. The central point of their argument was that Elon Musk did not have access to files that showed the number of spam bots.
The Everything App
After the news of Elon Musk’s u-turn on the Twitter Deal broke out; the Tesla CEO confirmed it was true.
He said that buying the social media platform would help him create the everything app, X.
“Buying Twitter is an accelerant to creating X, the everything app,” he said in a tweet.
Elon Musk is one of those entrepreneurs that keep the public in expectation while working on a project. Many Twitter users are waiting for more details about the” everything app.”
Elon Musk is not the only one that invested in buying Twitter, but he spearheads the deal.
With new developments, it looks like the Tesla CEO may not have everything as smooth as it was in the beginning. Many experts say that Twitter may apply more caution while dealing with Elon Musk for the second time.
Experts also predict that Twitter may need Elon Musk to put the money required for the transaction in an escrow account while waiting for the deal to be completed.