Elon Musk and Twitter are likely to reach an agreement soon to end their legal battle, clearing the way for the world's richest person to close his USD 44 billion deal for the social media firm, according to anonymous sources.
The billionaire recently offered to push through with his buyout of Twitter at the original agreed price, just weeks before the scheduled start of a bitter court case over his efforts to withdraw from the deal. The world's richest man said in a filing with the Securities and Exchange Commission that he sent Twitter a letter vowing to honor the contract.
The latest twist in the long-running saga came ahead of the high-stakes trial instigated by Twitter in an attempt to hold the Tesla chief to the deal he signed in April.
Musk's potential stewardship of the social media site has sparked worry from activists who fear he could open the gates to more abusive and misinformative posts.
Early reports of the U-turn by Musk prompted a surge in Twitter's share value that triggered a suspension of trading, which resumed after the regulatory filing.
"We write to notify you that the Musk Parties intend to proceed to closing of the transaction," read a copy of the letter to Twitter filed with the SEC.
Conditions noted in Musk's letter included that the court halt action in the lawsuit against him. He had been slated to be questioned under oath by Twitter attorneys later this week.
Twitter's legal team, however, has yet to accept the agreement and Chancellor Kathaleen McCormick, the judge on Delaware's Court of Chancery, said she was preparing for the looming trial.
"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 October 17, 2022," McCormick wrote in a Wednesday court filing.
A serial entrepreneur made rich through his success with Tesla electric cars, Musk began to step back from the Twitter deal soon after it was agreed. He said in July that he was canceling the purchase because he was misled by Twitter concerning the number of fake 'bot' accounts, allegations rejected by the company.
Twitter, meanwhile, has sought to prove Musk was contriving excuses to walk away because he changed his mind.