Elon Musk buys Twitter to avoid going to trial

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Elon Musk buys Twitter to avoid going to trial

Elon Musk has offered to go ahead with the purchase of Twitter to avoid going to judgment and put like this It put an end to one of the biggest recent soap operas in the tech industry. After months of disputes and cross accusations, the technology tycoon would have backed down by informing the social networkof its intention to maintain the agreement sealed last April and close its acquisition for 44,000 million dollars (about 41,000 million euros). The social network has responded that it accepts the offer and has communicated it to the SEC, the US stock market regulator.

According to 'Bloomberg', citing people familiar with the conversation, they have confirmed other American media, the richest man in the world sent a letter with his proposal to the board of directors of the platform during the night of Monday, an option that is still open. being studied. The initial price of the Twitter sale was agreed upon. at 54.20 dollars per share, a figure much higher than the current value of the social network.

Legal battle

Shortly after closing that purchase agreement in April, Musk began to accuse Twitter of lying in reference to the number of false accounts that operate within the platform. After almost two months of speculation, the controversial businessman – leader of companies such as Tesla or SpaceX— declared in July that it no longer wanted to complete the acquisition to which it had committed in writing. The directive of the social network denounced then to Musk for breaching the agreement and forcing him to rectify. Along the way, the valuation of the company has plummeted, undermining the confidence of its employees and generating a climate of nerves and uncertainty.

The long-awaited trial between Twitter and Musk is underway. set for October 17, less than two weeks from now. The social network assured that Musk's spam arguments were “smokescreens” to backtrack and try to correct a deal that could have closed for a lower price. Even so, the company's former head of security in July that Twitter “lied” to regulators about its security issues and about the actual number of automated accounts (or 'bots'), thus Musk's thesis.

If accepted, Musk's rectification would allow him to avoid a long and costly process whose resolution is unknown. On the other hand, the US media point out that the purchase offer could be a negotiation tactic by the tycoon to stop the litigation.

The news has been received with euphoria in the markets. The Twitter shares have soared 12.67% after learning of Musk's rectification. The company has temporarily suspended its listing on the stock market in the hope that an agreement can be closed that would mean a clear victory for the social network, because in addition to achieving its initial objective —ratified by its shareholders— that would allow him to put an end to his internal crisis.

Before opening this business soap opera by rejecting the purchase agreement, Musk promised He told Twitter investors that by 2025 it could achieve 500 million daily users and revenues of 13.2 billion dollars, figures far from the 5.077 million revenues last year. It has been speculated that a Twitter under Musk's control will lead to limiting content moderation, opening the algorithms and even allowing former US President Donald Trump to return to the platform.