How the legal battle between Elon Musk and Twitter is heated
All the latest news on the legal battle between Elon Musk and the Twitter company on the agreement for the acquisition by the owner of Tesla for over 44 billion dollars
No holds barred the legal battle between Twitter and Elon Musk.
The American billionaire is suing Goldman Sachs and JPMorgan for consulting the two Wall Street banks to the Twitter company on its proposed $ 44 billion acquisition of the platform. The Financial Times reveals it today.
For its part, Twitter has also implicated Tesla (Elon Musk's electric car company) in the lawsuit. The San Francisco company demands all Tesla documents and communications relating to Elon Musk's offer to take over the social media company. This is what emerges from a new quote filed on August 2, taken up by The Verge .
This is the latest legal maneuver in the dispute between Musk and Twitter.
The entrepreneur agreed to buy Twitter on April 25, but tried to withdraw from the deal on July 8 without paying the $ 1 billion penalty, citing Twitter's inability to provide details on the prevalence of bot and spam accounts. .
Twitter then filed a lawsuit against Musk in the Delaware court to force him to carry out his $ 44 billion plan to buy the company. In its favor, Twitter argues that Musk has signed a contract to buy the company and is using the spam account story as a false pretense to get out of the deal.
Meanwhile, uncertainty surrounding the acquisition has left Twitter grappling with reduced advertiser spending and a disappointing quarterly report. Twitter explains that the uncertainty of the macroeconomic context and that linked to Elon Musk weighed on the quarter.
All the details awaiting the trial that will begin on October 17 in Delaware.
MUSK ALSO SUITED GOLDMAN AND JPMORGAN
In the latest quotes, Musk is looking for documents and communications exchanged between Twitter and Goldman and JPMorgan banks. He is looking for information on banks' analysis of Twitter's financial performance, discussions with the company about the merger, and any analysis of its valuation.
Musk also sued Allen & Co, who recommended the social media platform.
As the FT reports, Goldman will earn $ 80 million by advising Twitter on the deal, but only $ 15 million if the transaction doesn't close. JPMorgan is set to earn 53 million, but will only pocket 5 million if the deal fades.
TWITTER TAKES TESLA DANCE
On the other hand, Twitter filed a Tesla subpoena. That is a list of 27 requests, including internal communications to Tesla about the Musk acquisition plan, all communications between Musk and Twitter and between Musk and his co-investors (such as Larry Ellison) and all documents relating to the approximately 8.4 billions of dollars in Tesla stock that Musk sold to fund the takeover bid.
Musk is Tesla's largest shareholder, owning roughly 17% of the company's shares, or roughly 175 million shares in total.
IN VIEW OF THE PROCESS OF OCTOBER 17
Meanwhile, the convocation of the trial is for October 17 in Delaware. According to Twitter's intentions, the trial should last only five days and end with the court order to the billionaire to abide by the pacts. The San Francisco company is in trouble after it closed the second quarter below analysts' expectations. Revenues fell 1% to $ 1.18 billion, less than the market's expectations of 1.32 billion. The net loss was 270 million. Twitter stocks fell on Wall Street after the disappointing quarter, losing 4% last week.
"It is likely that uncertainty caused by Musk and his withdrawal from the deal is likely to weigh on the accounts, although for many analysts the disappointing results are confirmation of what Tesla's boss has been saying for months and could even prove to be a ' weapon to be unsheathed in court to defend his step backwards. Others, on the other hand, agree with Twitter: advertisers have curbed space purchases because they are worried about a possible acquisition of Musk, opposed to advertising and intending to loosen controls on posted content ”reports Ansa.
Finally, Twitter plans to hold a shareholders' meeting to vote on the acquisition on September 13.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/innovazione/come-si-infervora-la-battaglia-legale-tra-elon-musk-e-twitter/ on Sat, 06 Aug 2022 06:15:10 +0000.