Musk gives up and says to buy Twitter for the originally agreed price

Updated

It will be done with the social network for 44,000 million dollars, as both parties had agreed months ago

Archive image of Elon Musk's Twitter account.
Archive image of Elon Musk’s Twitter account.Eric RisbergAP
  • Q&A The keys to the legal battle between Elon Musk and Twitter

bill savit, the leader of the legal team that advises Twitter, could have achieved the dream of every lawyer: that his client win before reaching trial. And, in this case, the prize is not less: $44 billion (the same amount in euros), paid by the richest man in the world, and recognized as a ‘baddie’ on social networks and a ‘thug’ in oral hearings of trials against him: Elon Musk.

According to the news agency Bloomberg and the web AxiosMusk has transmitted to Twitter his intention to buy the company at a price of $54.20 a share, a figure that is a joke -according to the businessman’s peculiar sense of humor- with a number, 420, which refers to marijuana (Musk has appeared on the internet smoking that drug). If the businessman does not back down again, it will be a surrender like the ones being carried out by the Russian Army in Ukraine, despite the fact that Musk has decided to give some geopolitical lessons -on Twitter, precisely- to the ignorant masses and propose to kyiv to hand over part of its territory to Moscow.

Musk announcement arrives with less than two weeks to go before the trial begins in the Court of Chancellery of the state of Delaware, in the USA, on the case. Musk made a takeover offer on Twitter in April in which he waived any kind of due diligencethat is, an examination of the acquired company, for which it also offered a fantastic 40% premium.

A few weeks later, he thought better of it and started backing up, throwing a campaign of insults and falsehoods against the company. Finally, in June this maneuver culminated. Twitter took him to court for breach of contract, and the businessman counterattacked with another lawsuit against the social network for fraud. Both cases will be heard in a single process in Delaware starting October 17. In the meantime, Twitter’s shareholders’ meeting has approved the purchase.

So far, preparations for the trial have gone really poorly for Musk, whose only defense seems to have been to try, unsuccessfully, to postpone the process and delay it as much as possible, in the style of Donald Trump. Twitter has managed to get the judge in the case, Kathaleen St. Jude McCormick, to force Trump to reveal that his own advisers do not believe his figures. bot on Twitter and, what is more damaging for him, a series of SMS messages between the businessman and several political, business, and opinion leaders in the United States, all of them linked to ‘trumpism’ or the Republican Party, such as the founder of Oracle, Larry Ellison, the podcaster anti-vaccine Joe Rogan, or the governor of Florida, and possible candidate for the White House, Ron DeSantis.

Outside the US, Musk’s SMS reveals support for the purchase by Mathias Dopfner, the CEO of the German media group Axel Springer, owner of, among others, the tabloid tabloid bild and of Political and Insider.

Twitter actions have risen 12% after hearing the news, although they are still 10% below the price offered by Musk. Those of Tela, which Musk directs and in which he has 15% of the capital, fell 2%. Although the electric car manufacturer is not involved in the purchase, the market fears that managing Twitter – a company that hardly makes any money – will make Musk pay less attention to that company.

In any case, the big question that remains pending now is what is Musk going to do with Twitter. The SMS that he had to deliver indicated that the businessman could have launched his offer in a completely impulsive way, and partly motivated by his personal animosity towards the Twitter address. As much as he said otherwise, Musk did not have a business plan for the company he wanted to buy, and his entire strategy seemed to come down to a gang of friends attitude with his fellow billionaires and with some politicians from the Republican Party. So it doesn’t seem surprising that he has dropped his online bully attitude and backpedaled. It may be a coincidence, but Elon Musk has accepted the purchase of Twitter just after the first day that he has had to testify for the trial.

The fact that the legal team of that company managed to get McCormick to call much of the ‘who’s who’ of Silicon Valley to testify could also have played a role in the sudden change of attitude of Musk, who still posted tweets in the summer. laughing at those who said he would have no choice but to go ahead with the acquisition.

Musk is the richest businessman in the world, with a wealth estimated by the agency Bloomberg at 223,000 million, almost double that of the second person in the classification, the founder of Amazon and maximum shareholder of that company, Jeff Bezos. Most of Musk’s fortune comes from Tesla, followed by the private rocket company SpaceX.

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