Home » Musk and Twitter may reach an agreement to end the legal battle as early as Wednesday, says the acquaintance
United States

Musk and Twitter may reach an agreement to end the legal battle as early as Wednesday, says the acquaintance

WILMINGTON, Del., Oct 5 (Reuters) – Elon Musk and Twitter Inc ( TWTR.N ) could reach an agreement to end their litigation as early as Wednesday, clearing the way for the world’s richest man to close his $44 billion deal. social media platform, a source familiar with the litigation told Reuters.

Musk, who is also chief executive of electric car maker Tesla Inc ( TSLA.O ), suggested to Twitter late on Monday that he would reverse course and follow through on an April agreement to buy the company for $54.20 a share if Twitter dropped its lawsuit. him.

Musk’s proposal on Monday included a condition that closing the deal was pending the receipt of the necessary loan funds. The source, who spoke on condition of anonymity, said a potential deal would remove that condition because the discussions are confidential.

Register now for FREE unlimited access to Reuters.comRegister

Twitter lawyers and Musk’s attorneys briefed the judge on Tuesday about their attempts to overcome mutual distrust and find a process to close the deal.

Musk will be deposed Thursday in Austin, Texas.

Musk canceled the deposition in late September, citing concerns about a Twitter lawyer’s possible exposure to someone who later tested positive for COVID-19, according to a court filing released Wednesday.

Shares of Twitter were down 0.7% at $51.63 on Wednesday afternoon. On Tuesday, the stock hit its highest level since Musk and Twitter agreed in April to buy the company for $54.20 a share.

Musk said in July that he was pulling out of the takeover deal after discovering that Twitter had allegedly misled him about, among other things, the number of fake accounts.

Part of Musk’s case was based on allegations made public in August by Twitter whistleblower Peiter “Mudge” Zatko.

Twitter’s legal team has sought to investigate whether Quinn Emanuel attorney Alex Spiro, who led Musk’s case, communicated with the whistleblower back in May. The law firm has said in court filings that its attorneys had no contact with Zatko or his representatives.

Spiro did not immediately respond to a request for comment.

On May 6, Twitter discovered an anonymous email to Spiro from “a former Twitter executive who led trust and safety/content moderation,” according to court documents. The sender offered to communicate by “other means”.

Zatko, who was Twitter’s security chief until he was fired in January, has said under oath that he had no contact with Musk or Musk’s lawyers at Quinn Emanuel.

The judge, Delaware Chancery Court Chancellor Kathaleen McCormick, said in Monday’s ruling that it was “at least plausible” that Zatko sent the anonymous email. He ordered Spiro to file a statement with the court by 4:30 p.m. EDT on Wednesday explaining his actions regarding the May 6 email.

Register now for FREE unlimited access to Reuters.comRegister

Reporting by Tom Hals in Wilmington, Del., and Anirban Sen in New York Editing by Nick Zieminski and Matthew Lewis

Our Standards: Thomson Reuters Trust Principles.

Tom Hals

Thomson Reuters

An award-winning reporter with more than two decades of experience in international news, focusing on high-profile legal battles over everything from government policy to corporate deals.