Elon Musk announced to everyone’s surprise on Tuesday, October 4 that he intended to honor the offer made to Twitter of 44 billion dollars. However, this reversal above all allows the boss of Tesla to avoid a probable legal setback against the social network. Indeed, many legal analysts say Elon Musk’s case isn’t strong enough to claim victory.
Clearly, this story never ends. In the hot file of the takeover of Twitter by Elon Musk, we had another major twist this Tuesday, October 4, 2022. As you may know, the boss of Tesla has finally decided to honor the takeover offer made to the social network for 44 billion dollars, or $54.20 per share.
And as our colleagues from The Verge site point out, Elon Musk’s turnaround is not trivial, far from it. Indeed, it was planned that the billionaire be auditioned as part of his trial against the social network this Thursday morning. He was due to make his statement in Austin, Texas (state where Tesla is headquartered) before the start of the trial scheduled for October 17.
But importantly, we have just learned that the boss of SpaceX negotiated a condition simple with Twitter to continue the takeover: that the social network drops the charges against him. This is why the testimony of the billionaire was finally canceled this Thursday, October 6. If the operation is confirmed, the legal confrontation scheduled for October 17 would also be forgotten.
Avoiding trial, Elon Musk’s main objective?
“It was the signal that Musk deemed highly unlikely to win a trial victory. Being forced to close the deal after a long and tough legal battle was not a script. ideal”, assures the renowned analyst Dan Ives of the Wedbush Securities bank.
For many specialists, avoiding this lawsuit allows Elon Musk to put an end to a potentially embarrassing unpacking on his private life, the judges having asked the payment of various documents such as SMS of the billionaire published ahead of the trial. In addition, we know that Musk’s legal team had expressed concerns about the case, stating that their case was not strong enough to hope for a victory.
Be careful however, negotiations between Twitter and Elon Musk are still ongoing. As long as that is the case, the trial is still scheduled for October 17. “The parties have not filed a stipulation to stay this lawsuit, and neither party has requested a stay,” said federal judge Kathleen McCormick, who is in charge of the case. As a reminder, Elon Musk has announced that he intends to launch his own social network called X.