Hours after reports of billionaire Tesla CEO Elon Musk’s proposal to buy Twitter at the originally agreed-on price of $44 billion, the microblogging site on Tuesday confirmed the development.

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“We received the letter from the Musk parties which they have filed with the SEC. The intention of the Company is to close the transaction at $54.20 per share,” Twitter said in a tweet.

Twitter issued this statement about today's news: We received the letter from the Musk parties which they have filed with the SEC. The intention of the Company is to close the transaction at $54.20 per share.

— Twitter Investor Relations (@TwitterIR) October 4, 2022

Musk, the chief executive of electric car maker Tesla Inc, shall take over the company he originally committed to buying in April, but soon soured on.

Following the development last evening, Twitter shares jumped 22 percent higher at the closing bell, the biggest gain since April 4 when Musk disclosed the huge stake in the company.

The buyout offer signals an end to a legal battle that could have forced Musk to pay up.

An agreement would put the world's richest person in charge of one of the most influential media platforms and end months of turbulent litigation that damaged Twitter's brand and fed Musk's reputation for erratic behavior.

Also Read | Explained: Elon Musk's Twitter turnaround reflects legal challenges

The development comes just a week ahead of a face-off between Musk and Twitter in Delaware's Court of Chancery on October 17, in which the social media company was set to seek an order directing Tesla's boss to close the deal for $44 billion.

Musk sent Twitter a letter on Monday that said he intended to proceed with the deal on the original terms if the Delaware judge stayed the proceedings. A source familiar with Twitter's team told Reuters that at a court hearing on Tuesday morning the judge requested the two sides to report back in the evening.

(With agency inputs)