Shulou(Shulou.com)11/24 Report--

Phoenix New Media Technology News Beijing time on October 11 news, people familiar with the matter said that just a few days before Elon Musk (Elon Musk) re-proposed to buy Twitter at the "original price", the two sides had discussed a deal at a discount of $50 per share, but Musk finally did not accept it.

Compared with the initial agreement of $54.20 per share, the price of $50 per share offered Mr Musk a discount of about 8 per cent, saving more than $3.3 billion (23.6 billion yuan) from his initial total offer of $44 billion.

Although they also discussed other prices, two people familiar with the matter said that $50 a share was a price repeatedly discussed by the two sides last week. But negotiations between the two sides broke down quickly, as often happens when Musk talks with Twitter and its executives. As of Monday's close, Twitter shares were up 2.40% at $50.36.

Why give up lower prices? Alex Spiro, Mr Musk's lawyer, said Mr Musk eventually decided to strike a deal at the original price of $54.20 a share and on the original terms because he refused to accept "all sorts of things" that Twitter executives and the board had asked to add to the renegotiated deal.

"they want carrots, but not sticks." Spiro said.

Spiro did not disclose the specific requirements put forward by Twitter. However, the main sticking point in the months of excruciating negotiations between the two sides was Musk's allegation that Twitter misdescribed the number of "robots" or untrue accounts on his platform. Musk's lawyers have been tracking the documents and subpoenaing Twitter executives and employees to find evidence of fraud.

Musk probably wants to be flexible, so it might make more sense for him to stick to the initial offer of $54.20. In fact, in the first takeover offer letter updated last Monday, Musk's lawyer made it clear that the billionaire could still do whatever he wanted with Twitter. The $44 billion offer "does not waive or impair any of their rights, including their right to defend and counterclaim in litigation," the letter said.

At the same time, Twitter wants Mr Musk to abandon the search for robot accounts, so it could be a negotiating point when the two sides discuss a deal at a lower price of $50 a share. Twitter is said to have challenged Musk's vague language about debt financing. If Musk wants to buy Twitter at a discount of $50 a share, Twitter wants him to complete the acquisition, no matter what his chosen bank and other financiers decide to do.

In order to circumvent the restrictions imposed by Twitter and given the imminent court trial and testimony, Mr Musk decided to buy Twitter on all the terms originally agreed to in the merger contract in April, according to people familiar with the matter.

The recent negotiations were slightly mentioned in the legal documents of the Delaware Court of Justice last Thursday. Musk demanded an immediate and unlimited suspension of proceedings and trials. His lawyer said the trial and case were now "meaningless" as Mr Musk renewed his full offer, accusing Twitter of refusing to "accept an affirmative answer". Musk's lawyer said Musk could become Twitter owner by October 28, as long as Twitter stops procrastinating.

Twitter objected. Lawyers for the company said they did not believe Mr Musk at the moment. They insist that if a bank promises more than $12 billion in financing for his purchase of Twitter, as he claims, the deal should be completed by Monday, October 10.

In the end, Judge Catherine McCormick (Kathleen McCormick) stopped the quarrel between the two sides. She sided with Musk and agreed to suspend the lawsuit, but only until October 28. She said the next three weeks would be spent on "closing the deal" between Musk and Twitter. However, if they fail to reach a settlement, the trial will be held sometime in November.

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