Elon Musk Reverses Course to Revive Twitter Deal

Elon Musk Reverses Course to Revive Twitter Deal

Twitter (TWTR) shares jumped over 22% yesterday and are flat in pre-market trading after Elon Musk revived his deal to buy the company at the original price.

In an amended regulatory filing by Twitter, the company said Musk has agreed to move forward with his $44 billion deal or $54.20 per share. The Twitter filing included a letter from Musk that said he “intends to proceed closing the transaction” originally reached in April. The letter also said he will complete the deal as long as he receives the financing he originally secured, and as long as a Delaware Chancery court adjourns Twitter’s case against him. 

The reversal comes just days before Musk was scheduled to be deposed by Twitter lawyers in the company’s lawsuit seeking to force the Tesla CEO to complete his purchase the company.

Musk previously said he had lined up a $46.5 billion financing package, about half in bank debt and the other half by Musk himself. Musk said he had $25 billion in debt from a group of banks led by Morgan Stanley, Bank of America and Barclays. Twitter shareholders approved the sale to Musk during a special shareholders meeting in September. A deal between Musk and Twitter could reportedly happen as soon as Friday.

Twitter shares are up about 21% so far this year.