Shares of Twitter were trading flat and up about 13% midday Tuesday after reports that Elon Musk had proposed moving forward with a deal to buy the company at an initially agreed-upon price of $54.20 per share.
Bloomberg and the Washington Post reported on Tuesday that Musk had sent a letter to Twitter proposing to complete the deal he initially signed, citing people familiar with the negotiations.
Representatives for Musk and Twitter did not immediately respond to a request for comment.
The news comes as Twitter prepares to go to trial in two weeks over Musk’s attempt to pull out of the $44 billion buyout deal. Twitter CEO Parag Agrawal was expected to be deposed by Musk’s lawyers on Monday, and Twitter’s lawyers planned to depose Musk as early as Thursday.
The deal could end a months-long, contentious back-and-forth between Musk and Twitter that has caused much uncertainty for employees, investors and users of one of the world’s biggest social media platforms.
The saga began in April when Musk announced that he had become Twitter’s largest shareholder. In the months that followed, Musk accepted and backed out of an offer to sit on Twitter’s board, threatened a counter-acquisition of the company, signed a deal to buy the company, raised concerns about bots on the platform, and tried to end it. settlement, Twitter sued to continue the settlement and added the claims of a Twitter whistleblower to its argument.
However, many legal experts have said that Twitter has the strongest case to go to court, and that Musk would have a heavy burden in trying to prove that the company made misleading statements in securities documents or in the settlement agreement.
The lawsuit was the last remaining hurdle to closing the deal after Twitter shareholders voted to approve the deal last month.