Elon Musk just went public with his legal counterattack on Twitter. The social network, which had been aware of the document since the end of July, has just published a reasoned response of 127 pages. For the social network, the assertions of the entrepreneur are “are not credible and are contrary to the facts”.
“Since Twitter filed a lawsuit to enforce his rights and exposing the weakness of the reasons put forward by Elon Musk, the entrepreneur has spent weeks finding other supposed reasons […] that offer an entirely new set of excuses to back out of the deal. This argument is a fiction with only contentious aim, moreover contradicted by the evidence and common sense”explains the social network.
Twitter Thinks Elon Musk’s Counter-Pitch Is ‘Litigation-Only Fiction’
Twitter adds that it never misled Elon Musk on the proportion of spam accounts, because the company had already communicated to the entrepreneur that this proportion could be higher due to limits preventing a more precise calculation. Twitter claims that there are 5% fake accounts, while Elon Musk claims 10%.
However, Twitter claims that “Elon Musk doesn’t measure the same as Twitter, or use the same data we do.” This problem is at the heart of the dispute between Elon Musk and Twitter. The social network has indeed launched legal proceedings against the entrepreneur after the boss of Tesla decided to suspend the takeover of the company founded by Jack Dorsey.
Initially, Elon Musk offered to buy Twitter for $54.20 per share. Which would have represented a total of some 44 billion dollars (!) and also involved an exit of Twitter from the stock market. A sum he promised to raise by opening lines of credit guaranteed by shares of his companies, in particular Tesla. The problem is that the context has become somewhat tense in the meantime.
The day after the acquisition was announced, Tesla’s market capitalization plummeted by $125 billion – knocking Elon Musk’s fortune down by some $30 billion. Initially, the entrepreneur continued to roll out his projects for the social network, suggesting that the takeover would still be done.
But on May 13, 2022, Elon Musk announced he was “pausing” the takeover deal – after a report from Twitter published that the proportion of fake accounts and spam accounts was only 5% on the network. social. From there follows a real soap opera, the outcome of which is still largely unknown.
The agreement signed by Elon Musk does not provide for any mechanism for “suspension” of the takeover. It even has several safeguards to prevent the entrepreneur from easily getting out of it. A clause thus allows Elon Musk to leave the agreement – but in this case he will have to pay 1 billion dollars (pure loss). And there does not seem to be any question at this stage of having her play.
It is possible that Elon Musk has not yet completely abandoned the idea of buying Twitter… he could in this scenario try to lower the amount of 44 billion. Twitter’s stock price is at the time of this writing at $41.06 (for a capitalization of $31.42 billion)
If the two parties fail to settle their differences amicably, a trial will be held on October 17 in the Delaware court. Judge Kathaleen McCormick estimates the trial will last 5 days. This experienced judge recently tried a very similar case. The defense, which tried, like Elon Musk, to get out of the agreement lost, and was forced to honor the terms initially agreed…