FOLLOW US

Elon Musk has reversed course and is again proposing to acquire Twitter for $54.20 a share, according to a regulatory filing on Tuesday. Twitter shares added more than 22% on the news.

The social media firm issued a statement saying it had received the letter and said, “The intention of the Company is to close the transaction at $54.20 per share.”

A deal is likely to happen as soon as Friday; sources told CNBC. The stock was plummeting earlier in the day after Bloomberg first reported on the Tesla CEO's plans to go forth with his deal to acquire the company.

Musk abandoned the deal after he alleged that Twitter was misstating the number of "bots" on its service as one of the reasons he was reneging on the deal.

Musk also alleged Twitter failed to provide him with the necessary data related to spam and bots, which Twitter denied.

Twitter alleged Musk was looking for a reason to back out of the deal when the company's shares plunged significantly alongside a broader decline in the broader market.

In September, Twitter shareholders approved Musk's original bid to purchase the company.

Meanwhile, Tesla shares closed up nearly 3% for the day.

Here's the letter that Musk's lawyer, Mike Ringler of Skadden Arps, sent to Twitter's lawyers on Oct. 3:

Gentlemen:

On behalf of X Holdings I, Inc., X Holdings II, Inc. and Elon R. Musk (the "Musk Parties"), we write to notify you that the Musk Parties intend to proceed to closing of the transaction contemplated by the April 25, 2022 Merger Agreement, on the terms and subject to the conditions set forth therein and pending receipt of the proceeds of the debt financing contemplated thereby, provided that the Delaware Chancery Court enter an immediate stay of the action, Twitter vs. Musk, et al. (C.A. No. 202-0613-KSJM) (the "Action") and adjourn the trial and all other proceedings related thereto pending such closing or further order of the Court.

The Musk Parties provide this notice without admission of liability and without waiver of or prejudice to any of their rights, including their right to assert the defenses and counterclaims pending in the Action, including in the event the Action is not stayed, Twitter fails or refuses to comply with its obligations under the April 25, 2022 Merger Agreement or if the transaction contemplated thereby otherwise fails to close