Elon Musk and Twitter: imminent outcome – 27/10/2022 at 04:44

After multiple reversals, Elon Musk could become the owner of Twitter on Friday (AFP / Olivier DOULIERY)

Elon Musk could become the owner of Twitter on Friday after months of the Hollywood saga, unless there is a new twist that leads to a lawsuit between the richest man in the world and the iconic social network.

“Everything suggests that the lawyers are cooperating and moving forward. I think we will find out on Friday that Elon Musk bought Twitter,” sums up Adam Badawi, a law professor at Berkeley University.

At the end of April, the Tesla boss made a purchase offer of $ 44 billion, which was grudgingly accepted by Twitter, before trying to unilaterally extract it in early July, accusing the company of lying to him.

The company’s board of directors had filed a complaint and seemed well on its way to forcing the extravagant boss to keep his word.

But at the beginning of October, ten days after the opening of the trial, a new turnaround: Elon Musk offers to conclude the operation at the price initially agreed.

The litigation judge then updates the proceedings and gives the two parties until October 28 to agree, failing which the trial will take place in November.

“If Elon Musk tries to retire again, we can expect the judge’s wrath,” comments Adam Badawi.

According to news agency Bloomberg, the multibillionaire on Monday pledged to complete the acquisition with bankers who are helping finance the deal.

And on Wednesday, Elon Musk went to Twitter headquarters, with a sink in his arms, to post a video with a pun on the English word “sink”, which can mean both “sink” and “absorb information.”

He even renamed himself “Chef Twit” on his profile – “twit” which means “moron”.

– “Voluntary departures” –

If the capricious leader and the social network sign the sale, “it’s like a house: we give you the keys,” observes Adam Badawi.

Elon Musk will then be able to immediately replace the members of the board of directors and the management of the group. Given the tone of his April text exchanges with Parag Agrawal, the current leader may not stay in his place for long.

And he probably won’t be the only one to leave. According to information published last week by the Washington Post, Elon Musk allegedly told investors that he ultimately intended to lay off nearly 75% of Twitter’s 7,500 employees.

“It messed up a lot of people,” notes a Twitter employee, who spoke to AFP on condition of anonymity.

He calculated, on the basis of internal data, that more than 700 employees have left the group since June. “These are rather voluntary departures, either for ethical reasons or for vile financial reasons, because a non-listed company is less attractive,” he believes.

He himself prefers to leave the “benefit of the doubt” to the businessman, but he will leave if the platform turns to the far right.

Because Elon Musk intends to ease the moderation of content, which he considers too rigid, as the American right wants.

He also claimed that profitability was not his priority, that he would fight spam better and make cryptic allusions to “X”, his vision of an all-purpose application (messaging, social networking, financial services …) , such as WeChat in China.

– “Burden” –

“Obviously we will pay too much, but the potential (of the platform) is far beyond its current value,” he told analysts at Tesla’s earnings conference recently.

Elon Musk’s personal fortune is estimated at approximately $ 224 billion by Forbes magazine. But much of that wealth consists of his Tesla and SpaceX shares.

To complement his funding, he took out $ 13 billion in Twitter-backed bank loans and used investment funds.

“It is a brutal situation for Tesla shareholders to bear this burden, as Musk may have to sell another $ 5 billion to $ 10 billion in stock,” said Dan Ives, an analyst at Wedbush Securities.

The leader said he would take Twitter out of the stock market. The company would therefore more easily escape any external control.

On October 4, at an innovations conference at Tesla, however, he stated that it was “essential” that his flagship be listed on Wall Street, “because if the public doesn’t like what Tesla is doing, the public can buy shares and vote differently. “.

“It’s very important that I can’t just do what I want,” he added, laughing.

Leave a Comment