Ignore the last few months of vicious legal battles.
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The world’s richest man has capitulated in his quest to break his most expensive promise of all time: to spend $44 billion to buy Twitter. In a October 3 letter on Twitter’s board, Musk intends to “proceed to close the transaction” he originally agreed to nearly six months ago. The news comes after what was probably his worst week on trial, a particularly difficult week for many of Silicon Valley‘s most powerful people, whose texts revealed that these supposed investment geniuses are a bunch of shy people. yes-men trying to use Elon Musk to deepen their wealth.
If there’s anything to take away from this deal, it’s that the deal isn’t done until the money is transferred to Twitter’s bank account and the keys are in the hands of Musk. It’s still up to Twitter to accept the agreement and the court to sign it. According to the wall street journalthe judge handling the case, Chancellor Kathaleen McCormick, told both sides to conclude an agreement At the end of the day. (This appears that it is not technically a settlement and that there may be further litigation to prevent the deal from unraveling again). Musk’s letter makes it clear that there are conditions attached to his offer to complete the deal, namely that the trial be adjourned, all legal actions related to the case be stayed, and funding pass. Is this a good deal for Twitter? The company tweeted that he intends to “close the deal at $54.20 per share,” the agreed price starting in April, but that says nothing about whether or not they will agree to that specific deal. If the case eventually went to trial, Twitter would have been entitled to around $300 million in prejudgment interest, essentially a penalty against Musk for filing a lawsuit, according to a briefed attorney who has followed that lawsuit closely. Still, Musk could end up walking away with Twitter within days. So all this legal back and forth may end up being useless. (At least we all had a good laugh?)
Twitter v. Musk has been the biggest case in business for about a decade – a high-stakes and often confusing clash between one of Silicon Valley’s most powerful men and one of the most influential social media companies in the world. world. In April, after Musk had quietly amassed a stake in the company, he offered to buy it for $54.20 per share, an amount that represented a premium to the stock price, and understood his joke. feature on weeds. It was a shotgun marriage: a deal signed after no due diligence by Musk that left him with very little wiggle room to end the whole thing. Shortly thereafter, markets fell, as did Twitter’s market value. Ever since Musk’s personal fortunes were overtaken by the fall in his Tesla shares, his own wealth was on the line. Musk complained about spambots on the platform, and those complaints became his excuse to scuttle the entire OK. Animosity on both sides grew, so by the time Twitter filed its lawsuit asking a judge to enforce the deal, the company was insisting that a man it said was untrustworthy should buy it even if he no longer wanted to – a deal that would only make the shareholders happy. After that, it emerged that a whistleblower had gone to Congress and the SEC to say the company was rife with fraud, which Twitter denied.
It’s worth speculating why this is happening now, with a trial set to begin in less than two weeks. It was obvious early on, before the first lawsuit was filed, that Musk would have an extremely hard time getting out of this deal, and the chances of him winning have only diminished over time. The cost of financing this deal has skyrocketed since interest rates have only risen since last spring. Musk’s deposition is also program for later this week. The core of the trial revolved around an idiosyncratic metric called Monetizable Daily Active Users, or mDAUs; Musk said with little evidence that there are more bots caught in this metric than Twitter is letting on, though proving that in court would be a huge hurdle. But last week was different, and it wouldn’t be surprising if the social pressure got to him. While Musk himself is famous beyond the realm of humiliated – a person who roughly feels the number of emotions as one of his arthritic looking robots — the cache of texts released by the Delaware chancery court last week has deflated the egos of much of Silicon Valley’s billionaire class. Not only did Oracle founder and CEO Larry Ellison look like he was taken for a ride, but some of venture capital‘s toughest guys ended up looking puny and pathetic. “You know I’m gonna ride or die brother – I’ll jump on a big [sic] for you,” VC Jason Calacanis emailed Musk after he was caught trying to sneak into the deal.
Most normal people tend to think, If I was a billionaire, why would I care what people say about me? My own observation about the autodidact rich – having reported on them over the past decade – is that they’ve become that way because they are extremely sensitive to criticism, class status and what it might mean for their future rise Forbes listing. Musk’s texts also revealed that, despite his reputation as someone who only listens to himself, he has in fact surrounded himself with an endless number of boosters who are happy to please him. they can take advantage of it. A court case would undoubtedly reveal more about their conversations – the things said in the depositions, the letters, any texts still under seal. If you’re a billionaire whose reputation is already suffering from a handful of demeaning texts, I imagine you’d be pushing for Musk to get that deal and keep all of that from coming to light as well.