July 9, 22nd
Musk blamed the social media platform's lack of transparency for his decision to back out of the acquisition bid.
As both sides prepare for a lengthy court battle, there is an alternate theory as to what caused the change of heart.
Josh Wolfe, co-founder of Lux Capital, said the ruse was a clever ruse to sell the entire stock of Tel Aviv Stock Exchange. Even after paying the $1 billion breakup fee, Musk would walk away with more than $7 billion in stock.
He can land rockets but can't fix them. Wolfe asked a rhetorical question.
entire thing was clever ruse toSELL + LIQUIDATE $8.5 BILLION of TESLA STOCK(w/plausible excuse for doing it)80% odds Elon pays $1B breakup fee + walks away with $7.5B liquidated20% spends $100M fighting litigationhonestly think he can “land rocketsâ€
but can’t fix ‘bots’? https://t.co/HTyOM3V36B
Henry Blodget said that Musk had to sell his options because they were about to expire.
He was able to do that without being asked why he was selling. He sold at a good price. Blodget made a statement via the social networking site.
Elon’s 10-year Tesla options were about to expire, so he had to sell them. The Twitter bid did allow him to do that without his facing questions about why he was selling. And he sold at an excellent price! https://t.co/5aY9y3Zhao
— Henry Blodget (@hblodget) July 8, 2022
Musk's legal team wrote a letter to the top lawyer at the company accusing them of making false and misleading representations.
In May, Musk put the acquisition deal on hold so his team could investigate the number of fake accounts on social media. According to internal metrics provided to Musk, 5% or less of users were bot. Musk said his team had not been given enough information to analyze the data.
The company is committed to closing the transaction on the price and terms agreed upon with Mr. Musk, and will pursue legal action to enforce the merger agreement.
The Twitter Board is committed to closing the transaction on the price and terms agreed upon with Mr. Musk and plans to pursue legal action to enforce the merger agreement. We are confident we will prevail in the Delaware Court of Chancery.
— Bret Taylor (@btaylor) July 8, 2022
The Delaware Court of Chancery is where we are confident we will win.
This article was contributed to by a Fortune employee.
All Rights Reserved © 2024
