Thursday 6 October 2022 03:19 AM Elon Musk and Twitter could be hours away from a deal but trial remains on track trends now
Elon Musk and Twitter are reportedly close to an agreement that would end their litigation and clear the path for the billionaire's $44 billion buyout -- but the judge in the case says the trial is still on track for now.
A source familiar with the litigation said the two sides could reach a deal to halt their court battle as soon as Wednesday night, potentially sparing Musk from a deposition the following day.
Meanwhile, the New York Times reported that in recent weeks Musk privately pleaded with Twitter to reduce the deal price by as much as 30 percent, valuing the company at $31 billion.
Twitter refused the proposal, as well as another to cut the price tag by 10 percent, before Musk acquiesced and renewed his originally agreed offer, according to the report citing four people familiar with the matter.
Musk, who is also chief executive officer of electric car maker Tesla, proposed to Twitter late on Monday he would abide by his April agreement to buy the company for $54.20 per share if Twitter dropped its litigation against him.
Although both sides publicly say they agree on the rich price, Twitter's legal team has yet to accept the agreement. The company likely hopes to use the threat of a trial to extract ironclad guarantees from the mercurial billionaire, ensuring he will complete the merger.
'There is naturally massive distrust between the Musk and Twitter sides given this nightmare soap opera since April,' wrote Wedbush analyst Dan Ives in a note.
On Wednesday, the judge in the case said neither side has yet requested a delay, adding that she was preparing for the looming trial, which is slated to start the week after next.
Elon Musk and Twitter are reportedly close to an agreement that would end their litigation and clear the path for the billionaire's $44 billion buyout
If the deal is finalized, Musk is expected to fire Twitter CEO Parag Agrawal (above) and name either himself or a trusted associated the new head of the social media company
'The parties have not filed a stipulation to stay this action, nor has any party moved for a stay. I, therefore, continue to press on toward our trial set to begin on Oct. 17, 2022,' wrote Chancellor Kathaleen McCormick, the judge on Delaware's Court of Chancery, in a court filing.
Musk's proposal to Twitter on Monday included a condition that the deal closing was pending the receipt of the necessary debt financing.
Chancellor Kathaleen McCormick said Wednesday that the trail remains on track until the parties reach an agreement
The potential agreement to halt the litigation would likely remove that condition, according to a Reuters source, who requested anonymity as the discussions are confidential.
Musk's financing contingency clause took on new relevance following a Reuters report that Apollo Global Management and Sixth Street are no longer in talks to help fund the buyout.
The two firms were not among the 18 equity investors named in a May SEC filing listing Musk's backers, but had previously been part of talks looking at providing about $1 billion in financing for the deal.
Those talks have now ended, the sources familiar with the matter told Reuters on Wednesday.
Musk has said he would finance the deal with his own cash, co-investors and bank financing, and its unclear what impact, if any, the
