Shares of Twitter are up 13% Tuesday as investors took heart that Elon Musk will move ahead with his tortured acquisition of the social media platform. The billionaire Tesla founder has proposed going forward with the deal for its original pricetag of $54.20 a share, or $44 billion. according to a Bloomberg report.
The surging stock, up nearly 18% at its high so far today, was halted from trading several times.
Musk agreed to buy Twitter in April but backed out. Twitter sued and the two sides were set to face off in Delaware Chancery Court later this month.
“This is a clear sign that Musk recognized heading into Delaware Court that the chances of winning vs. Twitter board was highly unlikely and this $44 billion deal was going to be completed one way or another,” said Daniel Ives. Being forced to do the deal after a long and ugly court battle in Delaware was not an ideal scenario and instead accepting this path and moving forward with the deal will save a massive legal headache.”