The slipper of Elon Musk, who again offers to buy Twitter

Elon Musk changed his mind again: the Tesla boss finally offered Twitter to buy the social network for the price agreed in April, two weeks before the trial scheduled between the two parties in this busy acquisition.

The businessman “intends to complete the transaction provided for in the acquisition agreement of April 25, 2022”, under the terms set out, wrote his lawyers in a letter addressed to the Californian group on Monday, and presented Tuesday with the American stock exchange police. , the second.

The only condition expressed in the letter: the end of the ongoing legal proceedings before the specialized court in Delaware.

Twitter’s title rose more than 22% at the close of the New York Stock Exchange, after being suspended all afternoon “pending information”, after an article by the Bloomberg agency that revealed this recovery.

Elon Musk had offered in the spring to buy the platform for $54.20 a share, valuing it at $44 billion. The board, very reluctant at first, eventually accepted.

But the capricious businessman unilaterally returned to that deal in July. Twitter then launched lawsuits to force him to honor his commitment, and it looked like he was well positioned to win.

On Tuesday, the group soon confirmed that it had “received the letter” and that it intends to “complete this transaction” at the set price.

“X.com”

“It is a clear sign that Musk recognizes that his chances of winning … are very low and that the purchase of 44 billion would have to happen one way or another,” reacted analyst Dan Ives of Wedbush Securities.

Elon Musk bombarded Twitter with criticism before and after signing the contract, including accusing the platform of censoring users.

He justified his retreat by saying that the proportion of spam and fake accounts on the platform was well over 5%, the number presented by the San Francisco company.

The trial was supposed to take place from October 17 to 21, but it won’t happen if Twitter accepts this new offer.

The multibillionaire didn’t say why he changed his mind, but he shared a cryptic tweet: “Buying Twitter is an accelerator to create X, the app for everything.”

X.com was an online banking startup co-founded by Elon Musk in 1999, later integrated into PayPal. The head of Tesla (electric cars), SpaceX (rockets) and Neuralink (brain implants) bought the domain name in 2017.

In August, asked on Twitter about the possibility of creating his own social network, he replied “X.com”.

“I have a great vision of what X.com or Company X could have been (…) I don’t need Twitter, but Twitter could probably accelerate in three years. I think it’s something that could be very useful for the world”, he also elaborated during the Tesla general meeting.

“Armored Contract”

“According to some speculation, Musk could have had to pay substantial interest if he had appealed, and therefore would have had to pay much more than the $54.20 a share,” says Adam Badawi, a professor of business law at the university.

The Musk clan appeared to have gained a point when Peiter Zatko, the former Twitter security chief who was fired in January, accused the group of major security breaches in late August in a report filed with US officials.

But during preliminary hearings, the multi-billionaire’s lawyers appeared to struggle to substantiate allegations against the automated accounts.

The ball is now in the bluebird’s court, which will require “an armored contract this time”, estimates Adam Badawi. “They’re going to want Musk to advance a good chunk of the total sum” before signing, he adds.

About six months after the saga began, the possibility of the richest man in the world becoming the owner of Twitter is therefore in the news again, much to the chagrin of many users and politicians.

The April deal was indeed met with many emotions, from the left’s anxiety to the right’s glee at the idea that Elon Musk would relax rules and content moderation.

“The platform will become a radicalization engine if it delivers even a fraction of what it promised,” Angelo Carusone, president of Media Matters for America, said in a statement Tuesday.

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