Musk manages to postpone the trial against Twitter after accepting his purchase

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Musk manages to postpone the trial against Twitter after accepting his purchase

The technological soap opera of the year is far from finished. The judge presiding over the legal case between Elon Musk and Twitter decided this Thursday to postpone the trial between both parties, which was to begin on October 17, until the 28th. Although the billionaire has not been able to definitively suspend the process, the court has given him eleven days of margin to close the purchase agreement of the social network for 44,000 million dollars (about 41,000 million euros).

After months of accusations, the richest man in the world changed his mind. of opinion this Tuesday when he announced to Twitter's board of directors its intention to comply with the pact closed on April 25 to buy the platform, a request that the social company accepted. Before, he had tried to lower the price agreed for that operation, well above the current value of the company. With this, Musk sought to avoid going to trial for breaching the agreement, a process that, according to industry experts, he had everything to lose.

The judge in the case, Kathaleen McCormick, has established that if on October 28 Musk and the board have not reached an agreement, he will establish another trial start date for November. That decision has irritated the leaders of the social network.

Twitter does not trust Musk

Twitter doesn't trust this new move by the controversial businessman, who has been changing the course of his strategy in recent months. The US media warned on Tuesday that now accepting the purchase of the social network could be one more maneuver to extend the court case.

“On the eve of trial, the defendants declare that they intend to close the deal after all. 'Trust us,' they say, 'we mean it this time,' and so they ask. that they be exempted from a trial on the merits”

Kevin Shannon, Twitter lawyer.

With the judge's decision, Musk avoids having to testify under oath, an appointment I had scheduled for this very Friday. Twitter has criticized that extension. “Now, on the eve of trial, the defendants declare that they intend to close (the settlement) after all. 'Trust us,' they say, 'we mean it this time.' , and that is why they ask that they be exempted from a trial on the merits,” Twitter's lawyer, Kevin Shannon, denounced in a letter to the judge.

Problems for the purchase

Twitter's concern goes further. The board of the platform has doubts that Musk may have the intention of gathering the enough money to close the purchase. Lawyers for the company have noted that the tech tycoon has not yet finalized plans to unlock the more than $12 billion of financing >of the debt What you should receive from the banks that are helping you finance the operation. “Just this morning, a corporate representative from one of the lending banks stated that Musk has not yet sent them a loan notice and has not communicated otherwise. So he intends to close the transaction, let alone within a certain period of time,” Shannon told the judge.

Even if Musk does. If you wanted to close that purchase, there are doubts about whether you could do it. The worsening of the economic situation since April makes the lending commitment of these banks now riskier than then. In addition, two investment firms that in May pledged to help Musk by financing more than $1 billion for the operation have backed down on last hours. All this indicates that the definitive purchase of Twitter could be choked. The tech soap opera of the year is on. far from over.