Elon Musk and Twitter discussed a renegotiated deal at $50 per share. Here's why it didn't work out.
told Insider that Musk ultimately decided to do the deal at the original $54.20 a share price and on the original terms, because he refused to accept"all kinds of things" Twitter's executives and its board were demanding be included in a renegotiated deal.Spiro did not say what exactly Twitter's side was demanding.
Musk likely wanted to retain flexibility, so sticking with the original $54.20 offer may have made more sense for him. Indeed, in the renewing his first takeover bid, Musk's lawyers made it clear the billionaire can still pursue any kind of action he wants against Twitter. The letter stated that the renewed $44 billion offer comes"without waiver of or prejudice to any of their rights, including their right to assert the defenses and counterclaims pending in the action.
The recent fraught negotiations were alluded to in legal filing on Thursday in Delaware Chancery Court, where Twitter sued Musk in July for deciding to back out of the deal. Musk sought an immediate and open-ended stay of the lawsuit and trial. His lawyers said the trial and case was now effectively"moot" with Musk's renewed full-price offer, and accused Twitter of refusing"to take yes for an answer." Musk could be the owner of Twitter by Oct.
In the end, Judge Kathleen McCormick, pressed pause on the bickering. She sided with Musk, in agreeing to halt the case, but only until Oct. 28. The next three weeks will be used for Musk and Twitter"to close on the transaction," she said. Should they not be able to come to a settlement, however, a trial will take place sometime in November.
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