‘Plot Twist!’: Elon Musk’s Deal for Twitter Lurches Toward a Close
Elon Musk is running out of ways to evade his original $44 billion contract to buy Twitter Inc.
The world's richest man, who was in a rush to acquire the social network in April and then abruptly soured on the deal, spent months trying to exit the obligation entirely. In recent weeks, both sides discussed a price that was about $4 below the $54.20 per-share accord, but couldn't agree on additional terms, according to people familiar with the matter.
On Oct. 3, Musk applied public pressure by formally re-offering to buy the company at the original price, aiming to avoid an Oct. 17 fight in Delaware Chancery Court. Twitter's stock shot up, with investors sensing the drama was nearly over. But the company's lawyers, suspicious of conditions in Musk's letter, including the stipulation that Twitter drop its lawsuit, called it “an invitation to further mischief.”
“Plot twist!” Musk tweeted.
Behind the scenes, Twitter's lawyers raced to verify Musk's renewed affinity for the deal, checking whether he had indeed asked lenders for the money they had earlier committed (one bank said he hadn't, Twitter says). Those same big banks tried to tally up potential losses on the months-old deal terms, while Twitter employees, still in limbo, turned to memes and gallows humor to get through the week.
By the night of Oct. 6, the billionaire finally got something he wanted: a delay of the trial. There, a judge would have scrutinized all his reasons for backing away from the deal in full view of the public and the media. In return, Musk was given a new, court-issued deadline of Oct. 28 to make good on his promises. If he and Twitter don't complete the transaction by then, he'll likely be on the witness stand in November.
The shift buys
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