Elon Musk Revives Twitter Buyout – Dogecoin Rallies

Tesla CEO and part-time crypto memelord, Elon Musk, has sent a letter to Twitter through his lawyers indicating he is now willing to purchase the company for the originally agreed price of $US44 billion, or US$54.20 per share. The letter was also filed with the SEC. 

This surprising move comes after Musk had previously reneged on his offer to buy Twitter, citing the social media giant’s lack of honesty and transparency around the extent of spam bots on the platform.

Immediately following the letter’s release, the price of DogeCoin, the meme coin Musk is so fond of, surged eight percent — changing hands at the time of writing at US$0.0656, up 9.2% on the day.

 Doge Coin Chart
Dogecoin chart over the last seven days. Source: CoinMarketCap

Deal to Close Twitter’s Case Against Musk

Musk’s new offer to buy Twitter specifies that the social media platform must immediately drop its legal action against him — relating to the retraction of his previous offer to buy the company — which was due to go to trial in just two weeks.

With Musk’s new offer, it appears the legal action has been dropped, and the deal, as originally agreed, will be closed:

Twitter issued this statement about today’s news: We received the letter from the Musk parties which they have filed with the SEC. The intention of the Company is to close the transaction at $54.20 per share.

— Twitter Investor Relations (@TwitterIR) October 4, 2022

The timing of this new offer begs speculation that Musk was trying to avoid going to trial, perhaps because he received legal advice that he was unlikely to win or in hopes of preventing information from being released at trial (already a large trove of Musk’s private text messages have been released as part of the case).

Musk has given the impression that he simply decided Twitter is, once again, a company he wants to purchase for strategic reasons. Following the release of the letter, Musk tweeted that the purchase of Twitter is an important part of his plan to develop ‘X’, something which he describes as ‘the everything app’.

Buying Twitter is an accelerant to creating X, the everything app

— Elon Musk (@elonmusk) October 4, 2022

Musk And Twitter: A Brief History

Musk originally offered to buy Twitter in April of this year, promising his purchase would bring a renewed commitment to freedom of speech on the platform — but the deal quickly ran into problems. 

Just three months after announcing his intention to purchase, Musk was backing out of the deal claiming that Twitter had provided him with misleading data about the prevalence of fake accounts and spam bots.

Twitter, for their part, insisted they had provided accurate data and took their case to the Delaware Court of Chancery to attempt to enforce the contract. 

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