The confrontation is taking place between the richest man on the planet and Twitter. Elon Musk, the billionaire CEO of Tesla, accuses the social network of… ” Forgery “ In the lawsuit related to the $44 billion deal he signed to acquire the company but is now seeking to break it.
Elon Musk, in his pleading Thursday, August 4th, in Delaware Business Court, accused Twitter of being “The disguised truth” The social network claims 238 million daily monetized users, according to this 165-page legal document referenced Friday by Agence France-Presse.
According to the billionaire’s lawyer, they are about 65 million less and Most of the ads It will only be broadcast“With less than 16 million users, a fraction” What Twitter claims. Eligible Complaint “misrepresentations” From the social network of “sins”confirm it Twitter frantically blocked the circulation of information in a desperate attempt to stop it [Elon Musk] fraud detection.
Elon Musk reached out to Twitter in April, then signed a $54.20-a-share purchase deal. He terminated it unilaterally in early July, on the grounds that the San Francisco-based company lied about the proportion of bot and random accounts on its platform.
In mid-July, Twitter sued Elon Musk in the Delaware Chancery Court, a court specializing in business law, to force him to honor his commitment to the $44 billion takeover. Two weeks later, the world’s richest man counterattacked with a complaint “Trusted”. The trial is scheduled to begin on October 17.
Previously, Twitter shareholders would meet on September 13 to allow or not this acquisition, which represents a significant added value for shareholders.
‘Distorting the value of Twitter’
Official documents filed by the platform with the US stock market policeman “Contains many material misrepresentations and omissions that distort the value of Twitter and led Elon Musk to agree to buy the company at an inflated price.”Reassure the businessman’s lawyers in their pleadings. They continued that Twitter’s strategy was “To play hide and seek” to prevent the buyer from “to discern the truth”.
Twitter responds that the businessman rushed to negotiations and that the agreement never mentioned the fake accounts, as the social network’s lawyers denounced “Trying to escape a contract that Musk no longer finds attractive since the stock market crash”.
Between the general decline in the stock market in recent months, plunging social media advertising revenue tied to economic conditions and general criticism from Elon Musk, Twitter’s stock collapsed to about $32 on July 11. On Friday, it was worth $42.52 at the close, up 3.56%. Tesla lost the title by 6.63% to $864.51.
Elon Musk was questioned Thursday night during the general meeting of Tesla shareholders about the situation with Twitter. Cautious, the entrepreneur was convinced by the assertion: “I use Twitter a lot (…) and since I understand this product very well, I have a good idea of how to guide the engineering team at Twitter to make the product radically better”. But “I don’t need Twitter for that”he added.