Elon Musk relaunches his plan to take over Twitter
Tesla boss Elon Musk , during a visit to its factory near Berlin in Germany
Elon Musk offered Twitter on Monday to buy the social network for the price agreed in April, according to press reports, two weeks before the trial between the two parties on this eventful acquisition.
Twitter stock trading was suspended on the New York Stock Exchange on Tuesday pending information, after a Bloomberg article that revealed this new offer from the Tesla boss.
< p class="e-p">According to the economic news agency, Elon Musk sent a letter to Twitter on Monday, offering to acquire the platform for $54.20 a share. say the amount he originally offered in the spring and the board eventually accepted.
The two parties had signed a contract in late April, but Elon Musk unilaterally reneged on this agreement in July.
The bluebird group then launched a lawsuit to force him to honor his commitment, and everything indicated that he was well positioned to win.
“This is a clear sign that Musk recognizes that his chances of winning against the board in a Delaware court are very slim and that the 44 billion redemption will happen one way or another.
— Dan Ives, Analyst at Wedbush Securities
Elon Musk bombarded Twitter with criticism before and after signing the takeover deal, accusing the platform of censoring users and failing to sufficiently combat spam emails. em> and fake accounts.
He had justified his backtracking by claiming that the proportion of automated accounts on the platform was well over 5%, the percentage advanced by the San Francisco company.
Faced with Twitter's complaint, the president of the Delaware specialized court to deal with the case granted the company a speedy trial, while Elon Musk wanted to wait until next year and demanded astronomical amounts of data.
The trial was supposed to be held from October 17 to 21, but it will not take place if Twitter accepts this new offer.
“Twitter is going to want a bulletproof contract this time around, which basically says, 'give us the money and we can do it.' They're going to want Musk to advance a good chunk of the total sum.
— Adam Badawi, professor of business law at the University of Berkeley
It's hard to know at this stage why the multi-billionaire has changed his mind . Neither Twitter nor Elon Musk's lawyers immediately responded to requests from AFP.
“According to some speculation, Musk may have had to pay substantial interest if he had appealed, and therefore have to pay much more than the $54.20 per share.
The Musk clan appeared to have gained a point when Peiter Zatko, the ex-Twitter security chief who was fired in January, accused in late August the group of major security breaches, in a report submitted to US authorities.
But during preliminary hearings with the judge, the multi-billionaire's lawyers seemed to be struggling to substantiate the charges on the automated accounts.
A Twitter lawyer thus reported two reports by data analytics companies hired by the businessman, Cyabra and CounterAction, who put the rate of fake accounts at 11% and 5.3%, respectively.
None of these reports even remotely support what Mr. Musk told Twitter and the world in his July 8 letter, attorney Brad Wilson told a hearing.
If the transaction goes through, the risk that regulators will oppose it is low, according to Dan Ives.
But the& #x27;Renewed idea that Tesla and SpaceX boss to own Twitter will cause a storm of concerns and questions from users and politicians, analyst added .
The April agreement had indeed been greeted with a lot of emotions, from the anxieties of the left to the joy of the right, to the #x27;idea for Elon Musk to relax rules and moderation of content.
The platform will become an engine of radicalization if he even applies& #x27;a fraction of what he promised, said Angelo Carusone, president tooth from the NGO Media Matters for America, in a statement Tuesday.