Their love story didn’t start well, but the break was over. After blowing hot and cold for three months around a possible Twitter acquisition, thee billionaire Elon Musk there is finally abandoned, triggering the launch of legal proceedings by social networks. We recap this failure for you.
1Elon Musk enters the capital of Twitter
Elon Musk announced on April 4 in a document filed with the SEC, the American stock market regulator, that he acquired almost 73.5 million shares of Twitter common stock, or 9.2% of the value of the social network, which sees its course on The Wall Street will soar. The next day, Twitter CEO Parag Agrawal announced that the Tesla boss had joined Twitter’s board of directors, before announcing on April 10 that Elon Musk had given up his seat on it, without giving further details.
2He offers to buy a social network
And for good reason, the eccentric businessman made a few days later an offer to buy back the entire company at a price of 54.20 dollars per share. He determined that it was “its best offer and its last offer”. This proposal values Twitter at approximately 44 billion dollars (43 billion euros).
Twitter initially resisted, announcing on April 15 that it had adopted a so-called “poison pill”, according to which the California group is ready to sell its shares for all other shareholders to prevent Elon Musk from easily acquiring its shares. But the board of directors of the group ends up giving in and announced on April 25 a definitive agreement of the repurchase of the billionaire of South African origin.
Then Elon Musk set about raising the necessary funds for the acquisition: the SEC revealed on April 29 that he sold 9.6 million Tesla shares for about 8.4 billion dollars (8.21 million euros). A few days later, the leader claimed that he had also secured 7.14 billion dollars (6.98 million euros) in financing, thanks to investors.
3The billionaire suspended the procedure
On May 13, the billionaire announced that he suspended the acquisition due to his concern about the real number of fake accounts on the social network, which caused the group’s share price to drop by about 20%. On the same day, however, he said that he was “always engaged” to buy a network.
On May 16, when Parag Agrawal tried to explain on Twitter the steps taken to combat fake accounts, he responded with a poo-shaped emoji. He threatened again, a few days later, to withdraw his offer because of the social network “active resistance” according to its requests for information on fake accounts. What the platform denied.
On June 16, he delivered a mixed exchange to Twitter employees, assuring that he was aiming for one billion users and asserting his ambition to reduce moderation on the site, which worried employees. A month ago, he assured that he will allow Donald Trump, who was banned after inciting the anger of his supporters during the attack on the Capitol on January 6, to rejoin the social network.
4Elon Musk has given up on buying Twitter
Finally, on July 8, the boss of Tesla and SpaceX announced on Twitter that he was ending the agreement due to “false and misleading statements” from the company on fake accounts. Twitter’s board of directors announced legal action to enforce the terms of the agreement. On July 12, it was argued that Elon Musk’s strategy was “a model of hypocrisy” and of “bad faith”Twitter is launching lawsuits in a court specializing in business law to force him to fulfill his promise.
5He may be forced to honor his agreement
The first hearing will take place on July 19. Twitter is asking for an accelerated procedure, starting in September, to avoid prolonging the period of uncertainty that has paralyzed the company. Elon Musk’s lawyers assured that the review will take several months “data mountain” and prove that the platform has more than 5% fake accounts, as it claims.
Judge Kathaleen McCormick, president of a court specializing in business law in the state of Delaware, finally decided that the trial will take place in October and last five days. In the event of a victory for Twitter, the entrepreneur may be forced to buy the company at the price agreed upon at the end of April (54.20 dollars per share) or pay significant damages.
6Elon Musk is offering to buy Twitter again, at the price agreed upon in April
The Tesla boss finally offered Twitter to buy the social network at an agreed price in April, two weeks before the trial scheduled between the two parties in this acquisition event. The contractor “intends to complete the transaction contemplated by the repurchase agreement on April 25, 2022”according to the terms provided, wrote to its lawyers in a letter addressed to the California group on Monday, and filed on Tuesday, October 4 with the American stock market policeman, the SEC.
The only condition expressed in the letter: the end of the legal proceedings conducted before the specialized court of Delaware. On the same day, the band confirmed in a short statement “letter received” and plan “to end this transaction” at the set price.