Just three months ago, Elon Musk, the great South African-born magnate, announced with great fanfare the Twitter purchaseThis social network had already become his trusted communication channel some time ago. In fact, we recall that it was right here where he first hinted at his interest in taking control of the platform.
Well, just when he was about to close the deal, he himself, by his own decision, decided to withdraw from the purchase. As expected, this did not sit well with the people at the blue bird social network. The substantial amount of $44 billion was at stake, which surely would have been very useful to Twitter as well.
Elon’s withdrawal from the “game” meant a $1 billion compensation to Twitter, something that apparently was not enough for the social network. Upon the announcement, the company immediately filed a lawsuit, clearly showing how badly Tesla’s owner’s move was received.
For his part, the billionaire claimed that the tech company provided misleading information during negotiations about the number of fake accounts on the network. Twitter states that less than 5% of its profiles are fake; a reality that, according to Elon, is far from the truth. The entrepreneur says he requested this information repeatedly without the tech company providing it. Now, with the lawsuit filed by Twitter against the magnate, he hopes to gain access to those documents and prove that the social network has more fake profiles than it declares.
But there is more behind the latest move by the multi-owner of companies and properties, as it seems there are more clues behind Musk’s step back. Twitter had fired two senior executives and reduced the size of its talent acquisition department. On top of this, there was a hiring freeze and the voluntary departure of three more executives. Well, Elon says he did not consent to all these maneuvers.
Analyzing both positions, everything seems to indicate that the law would favor Twitter and require Elon to complete the deal based on the doctrine of “specific performance.”
Elon Musk now has control over Twitter
Shortly after Elon announced breaking the Twitter purchase agreement, the company dropped 6% on the stock market and its share price settled at €34.58.
For those who don't remember, the platform saw a reverse movement in April when Elon Musk announced the purchase of 9% of the company. At that time, Twitter's shares rose by 25% in value.
This shows the great influence the magnate has and how he can move things at will just by opening his mouth. How will this whole story end? We'll have to keep a close eye on the next installments. We're hooked, how about you?
