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Twitter: Elon Musk files new takeover bid

The price of $54.20 per Twitter share, set by the billionaire in April, was agreed by both parties on Tuesday.

Correspondent in Washington

Elon Musk once again chose to turn around rather than risk losing the lawsuit. The unpredictable industrialist finally made good on his April pledge to buy Twitter for $44 billion. The buyout price of the platform, set in April at $54.20 per share, remains the same and has been confirmed by both parties. The social network confirmed on Tuesday evening that the American entrepreneur had indeed submitted a new takeover bid. “We have received a letter (…). The intention of the company is to complete this transaction at the set price,” the San Francisco-based group tweeted.

The Twitter name took over 22% on the New York Stock Exchange after it was suspended for an entire day “pending information” following a Bloomberg article that revealed the rebound. Lawyers for the social network and Elon Musk are discussing the terms of an agreement that will avoid a lawsuit that was due to begin on October 17 in the Delaware Court of Chancery, a court that specializes in business acquisition disputes. .

It was before this body, known for its quick decisions and very unfavorable jurisprudence against business acquirers who change their minds, that Twitter brought in Elon Musk in July to force him to honor his costly undertaking. In recent days, Judge Catalyn McCormick has ruled in favor of Twitter’s lawyers on various procedural issues several times in the preliminary phase of the trial. The burden of proof was very high for Elon Musk. First, he needed to demonstrate that Twitter had intentionally inflated the number of users on its platform. He then had to prove that the ploy had a significant enough impact on the company’s valuation to invalidate the terms of the acquisition.

However, according to Twitter lawyers, two experts hired by Musk to assess the proportion of false accounts opened on the social network did not draw enough conclusions to establish cheating. One would assume that 5.3% of the accounts were fake. Another would set the bar at 11%. Twitter, for its part, has always claimed that less than 5% of its users are actually robots.

An uncertain future for Twitter

If Elon Musk does indeed own Twitter at the price originally agreed, the California group’s leadership will win a strange victory. Elon Musk has been highly critical of his leadership, privacy protections, the way he censors tweets, and his reliance on ad revenue. It’s hard to imagine how Parag Agrawal, the head of the San Francisco firm, can stay where he is.

Not very clear are the Twitter plans of the billionaire who is already the boss and founder of automaker Tesla and space transportation company SpaceX. While the chain’s financial results are disappointing, to the point that the company reported a loss in the second quarter, the morale of its teams has been hit hard by disagreements between its buyer and incumbent leaders. Twitter is famous in the world of media and politics, but on average it has only 238 million monetized active users every day, which remains insignificant compared to Facebook’s 2 billion daily users…

Before withdrawing from his purchase promise, Elon Musk put forward an intention to more than double the number of users by 2025. A moody libertarian who likes to speak out on all topics wants to make the network “the forum of the world of free speech.” “. He criticized Donald Trump’s ban on tweets since January 8. He also advocated a subscription-based business model. He is also thinking about offering money transfer services to Twitter users. Elon Musk is known for his innovative courage…

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