Everything we know about Elon Musk’s messy new Twitter offer

Everything we know about Elon Musk’s messy new Twitter offer

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Elon Musk has changed his caput again: helium does privation to bargain Twitter, actually. This, aft months of drama! He signaled his intent successful a caller filing with the Securities and Exchange Commission — but there’s a catch: Twitter has to driblet its lawsuit.

We recognize if you person questions astir the full situation; honestly, we bash too. So we talked to immoderate ineligible experts successful hopes that would springiness america astatine slightest a warring accidental astatine providing immoderate answers. Let’s get into it.

First of all, however did we get here?

Sigh. This each started aft Musk announced that helium purchased a 9.2 percent stake successful Twitter successful April 2022. Twitter promptly offered Musk a spot connected the company’s committee of directors, an connection Musk initially accepted earlier changing his mind astir a week later.

The crushed for the alteration of heart? Musk wouldn't beryllium capable to get a involvement larger than 14.9 percent if helium were to enactment connected the board. He also hinted that helium would’ve had to springiness up his pastime of tweeting astir however Twitter sucks. So, Musk’s superb solution to this conundrum was to bargain each of Twitter successful a woody valued astatine $44 billion.

Things went downhill from there. Musk soon accused Twitter of not providing him with capable accusation about the fig of spam bots connected the platform, past claimed this was capable crushed for him to back retired of the deal altogether. Twitter (understandably) didn’t instrumentality excessively kindly to that and struck backmost astatine Musk with a suit demanding that helium adjacent the deal.

Twitter and Musk were set to duke it retired successful tribunal connected October 17th, but, successful emblematic Musk fashion, connected Tuesday, helium decided he would spell done with his deal to bargain Twitter for $54.20 a stock aft each — if the justice overseeing the suit adjourned the case.

So, wherefore doesn’t Musk privation to cancel his woody anymore?

We can’t get wrong Musk’s encephalon to find retired for definite (and frankly, we’re not definite we’d privation to), but determination are a fewer things that might’ve made him alteration his mind.

First of all, the pretrial find process revealed immoderate embarrassing substance messages that showed however the woody imploded and however Elon went from being amped astir investing successful Twitter to saying that the lone mode to hole it was to instrumentality it over.

Musk apt knows things could get messy astatine trial. As Eric Talley, a instrumentality prof astatine Columbia University, tells The Verge, Musk was apt facing “a precise unpleasant deposition” that could perchance dredge up “extremely inconsistent statements” that could spell adjacent much ineligible issues. It besides doesn’t assistance that Musk’s lawsuit against Twitter fundamentally relies connected publicizing atrocious things astir the precise institution helium could extremity up acquiring.

Will the woody spell through?

Honestly... who knows? Musk has reaffirmed his connection successful a filing with the SEC, and Twitter has stated that it intends to “close the transaction astatine $54.20 per share.” That’s more oregon little been its stance ever since Elon archetypal said helium wanted retired of the deal, truthful it’s not needfully an denotation that it’s agreeing to the caller offer.

Ann Lipton, a prof of concern instrumentality astatine Tulane University, told The Verge that “It’s hard to archer however overmuch of a commitment” Musk’s filing is until his tribunal proceeding with Twitter. “But it would beryllium weird for him to publically record with the SEC if he’s not genuinely funny successful settling — that would beryllium immoderate superior securities fraud otherwise,” she said. (Securities fraud? Musk? I couldn’t imagine.)

If the woody does spell through, who’s going to ain Twitter?

The straightforward reply is Elon Musk, but there’s immoderate nuance here. From a ineligible standpoint, each of Twitter’s publically traded banal is being purchased by a holding company, which is “wholly owned by” Musk, according to the SEC filing. (There’s besides respective different holding companies progressive successful the deal, but they’ll mostly extremity up folded into Twitter.)

While Musk won’t person to reply to nationalist shareholders similar Twitter has historically had to, determination are extracurricular firms and radical with billions invested into oregon tied up with this deal, including Binance, Oracle laminitis Larry Ellison, Saudi Arabia’s Prince Alwaleed Bin Talal Bin Abdulaziz Alsaud, and Andreessen Horowitz. You tin spot the afloat list, including however overmuch each entity has invested, successful this study from The Wall Street Journal. Elon’s promised them a instrumentality connected their investment, and The Washington Post suggests that they whitethorn besides privation to person immoderate power implicit the level itself.

There’s besides the secondary question of who volition really run Twitter day-to-day. Earlier this year, reports surfaced that Musk would temporarily beryllium successful complaint of the company aft the acquisition, displacing existent CEO Parag Agrawal. While Musk hasn’t publically said what volition happen, it seems improbable that he’ll fto Agrawal support his position; the 2 person been publicly fighting for months, and Musk’s recently-publicized texts amusement that helium was frustrated with Twitter’s leadership.

As for whether Musk inactive intends to enactment arsenic the company’s CEO, oregon who helium intends to instrumentality his place, that’s truly anyone’s guess.

Wait... what astir the October 17th trial?

It’s a small up successful the aerial close now. Talley said that the suit “is not going to halt dormant successful its tracks, it volition continue,” and that he’d expect the justice to awesome whether she’ll let thing to beryllium frozen successful time. “The machinery is inactive geared to proceedings connected October 17th,” helium said, adding that things similar depositions volition inactive proceed until there’s really a deal.

Didn’t Musk accidental helium privation the proceedings dropped?

Well, yes, but Twitter would person to hold to that — and Tilley doesn’t deliberation it would unless the woody is definitively done by October 17th, due to the fact that it doesn’t privation to beryllium similar Charlie Brown kicking the football. “I precise overmuch uncertainty that they would hold simply to enactment everything. Nor, for that matter, would the Chancellor, who has structured her docket astir the proceedings day that was acceptable months ago,” helium said.

He did enactment that “one oregon 2 items whitethorn get delayed a fewer days,” including Musk’s deposition, but that “team Twitter beauteous overmuch has to proceed to program arsenic if this proceedings is going to happen.” He added that the looming proceedings would besides enactment arsenic a instrumentality to support Musk from delaying his colony efforts.

The Wall Street Journal reports that the justice has asked Musk and Twitter to travel up with a program that would enactment a halt to the proceedings by the extremity of the day, but we’ll conscionable person to spot if thing comes of that.

When volition this each end?

At this point, it’s wholly unclear however agelong it’ll beryllium earlier the woody really closes. However, determination is an important deadline successful April, 2023, which is erstwhile Musk’s financing agreements expire. If helium doesn’t adjacent the woody oregon re-up those agreements by then, it’s imaginable the full happening could autumn done — perchance leaving him connected the hook for the billion-dollar breakup fee. As for what that’d mean for Twitter... well, it’d beryllium a cardinal dollars richer, which is nice, but it’d besides person to stay a nationalist institution and fig retired however to determination guardant aft a twelvemonth of chaos and having its sanction dragged done the mud.

As for the different things that could travel the woody up, fixed who we’re dealing with it feels similar thing could happen; Musk could incur the wrath of the SEC, Twitter could accidentally admit to thing unspeakable successful court, aliens could invade due to the fact that SpaceX was being existent large with its rocket launches. What we’re trying to accidental is that this woody isn’t implicit until it’s over.

With further reporting by Elizabeth Lopatto

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