Twitter takes legal action against Musk: “With this case, the president of Tesla has alienated the entire economic planet”

A new episode in the saga related to Elon Musk’s takeover of Twitter. The social network has just taken legal action to “force” the billionaire to end his takeover. As a reminder, Elon Musk had agreed at the end of last April to acquire Twitter for the amount of its valuation, which was then estimated at $ 44 billion. But the Tesla boss backed down last week while justifying the blackout on the number of fake accounts.

Twitter has decided to sue Elon Musk in Delaware Where is the buy-back contract drawn up?asks Damien van Ashter, media entrepreneur and director of innovation and digital at Bouquet (Namur). “In my opinion, with this maneuver, the social network is above all trying to present its own version of the story. From the start, we’ve actually seen two Storytelling Different, interspersed with eccentric tweets from multiple entrepreneurs. Twitter also wants to show Musk that it’s not easy to walk away from the deal.”

Thus, in the coming weeks, business lawyers on both sides will not hesitate to prove on the one hand that all the information Musk requested has already been transmitted, or on the other hand that the number of fake accounts is not transparent.

According to US law, it is theoretically possible that after examination of the file by a court judge specializing in business law, Elon Musk is finally obligated to carry out the acquisition. However, there are “special events” that can put an end to the agreement, such as the infamous debate over the number of fake accounts. This data is often kept secret through social networks, and directly affects the number of real active users, and, accordingly, on profitability and finally Company evaluation.

Twitter weakening

“When we want to make a takeover offer, we make a so-called due diligence By making an accurate inventory of the target company’s condition,” Damien van Ashter continues. “However, during this process, Elon Musk did not officially request the numbers for the fake accounts. (Information is not public but Twitter was obligated to communicate, editor’s note). Musk didn’t pay any attention to this until then, which is why we can believe this argument is just an excuse to speculate on the downside and withdraw the takeover offer.. “

To some observers, the Tesla boss didn’t really mean to get his hands on the social network. “If he really wants to pay back, despite the fake accounts, the process will follow its natural course. It is possible that Elon Musk will do all this circus just to prove his power by showing that he can raise $44 billion, and to weaken the social network with which he disagrees On the principle of freedom of expression. On the other hand, if the takeover does materialize, the current legal battle allows Musk to destabilize Twitter at the level of his internal management, with the goal of a better takeover later.”Damien van Akter analyzes. “It’s also a good way to lower the price”continues Xavier Degraux, independent consultant and coach in social networking and digital marketing.

The parties have until October 24 to finish the process as stipulated in the takeover contract, which also states that in the event of a breach, Elon Musk may have to pay $1 billion in compensation.

A third actor?

For Xavier Degraux, at the end of this case, there are three possible scenarios. First, Twitter and Musk could reach an amicable agreement under which the billionaire would have to pay compensation for the unsuccessful deal. “The amount will certainly be several billion and not one billion, because this first amount relates to the possibility that Musk will not succeed in raising 44 billion, which is very unreliable given his many assets.”says Xavier Degaux.

Another possibility is for the acquisition to take place but at a cost of less than $44 billion initially. “It must be said that Musk was not so lucky. After his bid was made, the markets and especially tech stocks plummeted. This is undoubtedly why the Tesla boss, with the file of fake accounts, is trying to buy Twitter for a more reasonable amount, which is likely to be 20-25 billion in light of the The current environment of the stock market”, The social media consultant explains.

The third option, it is not impossible for a third actor to play the “White Knight” can actually take advantage of the chaos between Twitter and Musk to buy the social network. “It won’t be Meta because US regulators won’t allow it, nor does Microsoft, which already has LinkedIn. On the other hand, players who aren’t cash-strapped like Google, Oracle or Salesforce can take advantage of the timing to make a good deal.” .

So the end of the story should be announced this fall, unless the dispute drags on through potential legal action. With this case, Elon Musk alienated the entire economic planet. concludes Xavier Degaux. He has other businesses to run with Tesla, SpaceX and Neuralink. In light of his multiple activities and the bad publicity generated by the operation, it would be best for the billionaire to have the case over quickly.” .

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