Their love story had already not started well, but the break is now consummated. After blowing hot and cold for three months around a possible takeover of Twitter, thee billionaire Elon Musk there is finally renounced, triggering the launch of legal proceedings by the social network. We recap this fiasco for you.
1Elon Musk enters the capital of Twitter
Elon Musk reveals on April 4 in a document filed with the SEC, the American stock market regulator, that he has acquired nearly 73.5 million shares of Twitter common stock, or 9.2% of the value of the social network, which is seeing its course on Wall Street soar. The next day, Twitter’s CEO, Parag Agrawal, announced that the Tesla boss had joined Twitter’s board of directors, before announcing on April 10 that Elon Musk had given up his seat on it, without giving more details. details.
2He offers to buy the social network
And for good reason, the whimsical businessman formulates a few days later an offer to buy back the entire company at a price of 54.20 dollars per share. He specifies that it is “of its best offer and its final offer”. This proposal then values Twitter at approximately 44 billion dollars (43 billion euros).
Twitter initially resisted, announcing on April 15 that it had adopted a so-called “poison pill”, according to which the Californian group is ready to sell off its shares for all other shareholders in order to prevent Elon Musk from easily redeeming its shares. But the board of directors of the group ends up yielding and announces on April 25 a definitive agreement of repurchase by the billionaire of South African origin.
Elon Musk then set about raising the necessary funds for the takeover: the SEC revealed on April 29 that he sold 9.6 million Tesla shares for around 8.4 billion dollars (8.21 million euros). A few days later, the leader claims to have also secured 7.14 billion dollars (6.98 million euros) in financing, thanks to investors.
3The billionaire suspends the procedure
On May 13, the billionaire announced that he was suspending the takeover because of his concern about the real number of fake accounts on the social network, causing the group’s share price to plunge by around 20%. On the same day, however, he said he was “always engaged” to buy the network.
On May 16, to Parag Agrawal who tried to explain on Twitter the measures taken to fight against fake accounts, he replied with an emoji in the shape of poop. He threatens again, a few days later, to withdraw his offer because the social network “actively resist” according to its requests for information on fake accounts. What the platform denies.
On June 16, he delivered a mixed exchange with Twitter employees, ensuring that he was aiming for a billion users and insisting on his ambition to reduce moderation on the site, worrying employees. A month earlier, he had assured that he would allow Donald Trump, banned after having stirred up the anger of his supporters during the assault on the Capitol on January 6, to rejoin the social network.
4Elon Musk gives up buying Twitter
Finally, on July 8, the boss of Tesla and SpaceX informs Twitter that he is ending the agreement because of “false and misleading statements” from the company on fake accounts. Twitter’s board of directors announced legal action to enforce the terms of the agreement. On July 12, arguing that Elon Musk’s strategy is “a model of hypocrisy” and of “bad faith”Twitter launches lawsuits in a court specializing in business law to force him to honor his commitment.
5He might be forced to honor his deal
A first hearing takes place on July 19. Twitter is asking for an accelerated procedure, starting in September, so as not to prolong the period of uncertainty which is paralyzing the company. Elon Musk’s lawyers assure that it will take several months to analyze “mountains of data” and prove that the platform has more than 5% fake accounts, as it claims.
Judge Kathaleen McCormick, president of a court specializing in business law in the state of Delaware, finally decides that the trial will take place in October and will last five days. In the event of a victory for Twitter, the businessman could be forced to buy the company at the price agreed at the end of April (54.20 dollars per share) or to pay substantial damages.
6Elon Musk again offers to buy Twitter, at the price agreed in April
The boss of Tesla finally offered Twitter to buy the social network at the agreed price in April, two weeks before the trial scheduled between the two parties on this eventful acquisition. The contractor “intends to complete the transaction envisaged by the repurchase agreement of April 25, 2022”according to the terms provided, wrote its lawyers in a letter addressed to the Californian group on Monday, and filed Tuesday, October 4 with the American stock market policeman, the SEC.
The only condition expressed in the letter: the end of the legal proceedings in progress before the specialized court of Delaware. On the same day, the band confirmed in a brief statement “to have received the letter” and intend “to conclude this transaction” at the set price.