With his default trial scheduled less than two weeks away, Elon Musk reportedly submitted a letter to Twitter on Monday night stating that intends to go through with his initial offer to purchase Twitter for the previously agreed-upon price of $54.20 per share, according to a source familiar with the negotiations
In May, Musk agreed to acquire Twitter for $44 billion, but when the company's valuation dropped, he sought to back out of the agreement. Twitter filed a lawsuit to compel Musk to uphold the agreement.
The late-hour offer to buy Twitter appears to be a move of desperation on Musk's part, because all signs pointed to him losing the lawsuit.
Musk's legal team was getting the sense that the case was not going well, as Judge Kathaleen St. J. McCormick sided repeatedly with Twitter in pretrial rulings, according to one person familiar. Even with the late emergence of a Twitter whistleblower who alleged executives weren't forthcoming on security and bot issues, there were concerns Musk's side would not be able to prove a material adverse effect, the legal standard required to exit the contract.
My guess is he will use this to find another, more legitimate reason, to back out of the deal.