Elon Musk vs Twitter: We summarize in five acts the legal battle between the billionaire and the social network

Their love story wasn’t really starting well, but the break is now complete. After blowing hot and cold for three months about a potential Twitter takeover,e Billionair Elon Musk exist It was finally abandoned, which triggered the initiation of legal proceedings before social network. We summarize for you this fiasco.

1Elon Musk enters the capital of Twitter

Elon Musk revealed on April 4 in a document submitted to the SEC, the regulator of the US stock market, that he has acquired approximately 73.5 million shares of common stock on Twitter, or 9.2% of the value of the social network, which is seeing its trajectory on Wall Street soar. The next day, Twitter CEO Parag Agrawal announced that the Tesla chief 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.

2Social Network Purchase Offers

And for good reason, a few days later the eccentric businessman drafted an offer to buy back the entire company at $54.20 a share. Determines that it is “One of her best performances and final show”. This proposal then puts Twitter at about $44 billion (€43 billion).

Twitter initially resisted, and announced on April 15 that it had adopted the so-called “poison pill”, under which the California group is willing to sell its shares to all other shareholders in order to prevent Elon Musk from easily redeeming its shares. But the group’s board of directors ended up abdicating and on April 25 announced a definitive buyback agreement by the South African billionaire.

Then Elon Musk set out to raise funds for the acquisition: the Securities and Exchange Commission revealed on April 29 that he had sold 9.6 million shares of Tesla stock for $8.4 billion (€8.21 million). A few days later, the manager claimed that he had also secured $7.14 billion (6.98 million euros) in financing, thanks to investors.

3The billionaire stops the procedure

On May 13, the billionaire announced that he was suspending the acquisition due to his concern about the true number of fake accounts on the social network, which caused the group’s share price to drop by about 20%. But he said on the same day that it was “always linked” to buy the network.

On May 16, to Parag Agrawal who tried to explain on Twitter the measures taken to combat fake accounts, he responded with a tube emoji. And he threatened again, a few days later, to withdraw his offer because of the social network “actively resist” Based on her requests for information about fake accounts. What the platform denies.

On June 16, he conducted a mixed exchange with Twitter employees, in which he confirmed that he was targeting one billion users and insisted on his ambition to reduce moderation on the site, which alarmed employees. A month ago, confirmed That he would allow Donald Trump, banned after he angered his supporters during the attack on the Capitol on January 6, to join the social network.

4Elon Musk gives up on buying Twitter

Finally, on July 8, the Tesla and SpaceX chief told Twitter that he was terminating 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, they argued that Elon Musk’s strategy is Hypocrisy model. Based on “Iman Si”Twitter launches lawsuits in business law court To force him to honor his commitment.

5He might have to honor his deal

The first hearing will be held on 19 July. And Twitter is demanding quick action, starting in September, so as not to prolong the period of uncertainty crippling the company. Elon Musk’s lawyers assert that it will take several months to analyze “Mountains of Data” And proof that the platform has more than 5% fake accounts as it claims.

Judge Kathleen McCormick, president of the Delaware Special Court of Business Law, finally decided that the trial will take place in October and will last five days. In the event that Twitter wins, the entrepreneur may have to buy the company at the price agreed upon at the end of April ($54.20 per share) or pay significant compensation.