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Twitter shares soared Tuesday afternoon after Elon Musk said he intended to continue with his original project. $54.20 per share offer acquire the social media giant.

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According to a letter filed with the U.S. Securities and Exchange Commission, Musk will go ahead with the $44 billion acquisition pending debt financing for the deal and on the condition that the Delaware Office drop Twitter’s lawsuit against him and postpone the upcoming lawsuit that was scheduled to begin. 17 October.

“The Musk parties are providing this notice without assuming liability and without waiving or prejudicing any of their rights, including their right to pursue defenses and counterclaims pending in a Claim, including if the Claim is not suspended, Twitter fails or refuses to fulfill its obligations under the Merger Agreement dated April 25, 2022, or if the deal so contemplated cannot be closed,” the letter reads.

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Twitter

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Ticker Safety Last Change Change %
TVTR Twitter Inc. 51.70 -0.31 -0.60%

A Twitter spokesperson told FOX Business that he had received Musk’s email and confirmed his intention to close the deal at $54.20 per share. A rep for Musk did not immediately respond to FOX Business’s request for comment.

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Twitter first accepted Musk’s offer in April. However, in July, the billionaire notified Twitter that he planned to terminate the deal after he said the company had violated its obligations by providing false information about the amount of spam and fake accounts on the platform. Twitter claims that spam and fake accounts make up less than 5% of its total user base.

In response, Twitter filed a lawsuit against Musk, accusing him of refusing to fulfill his obligations under the agreement because “the deal he signed no longer serves his personal interests.” Musk filed a counterclaim that was amended last month to include accusations from whistleblower and former Twitter security chief Pater “Maj” Zatko.

Wedbush analyst Daniel Ives called the proposal a “smart move” but added that it was a “clear sign” that Musk admitted that his chances of winning in Delaware were unlikely.

“Forcing a deal after a long and ugly legal battle in Delaware was not an ideal scenario and instead taking this path and moving the deal forward would save a huge legal headache,” Ives wrote in a note to clients on Tuesday. “We see minimal regulatory risk in this deal, although now Musk, who owns the Twitter platform, will cause a storm of concern and questions among users and the Beltway.”

The deal has already received approval from Twitter shareholders.