In the past, Musk has said he didn't want to buy the social networking site. This is after a long time of drama. There is a catch, but he signaled his intent in a new filing with the SEC.
We know if you have questions about the whole situation. We talked to some legal experts to try and get some answers. Get into it.
It's really sad. After Musk bought a 9.2 percent stake in the company, this all began. Musk initially accepted the seat on the board, but changed his mind about a week later.
There is a reason for the change of mind. If Musk were to stay on the board, he wouldn't be able to buy more than 14.9% of the company. He said that he would have had to give up his hobby of using the social networking site as a means of communication. The solution to this dilemma was for Musk to buy all of the company.
From there, things went downhill. Musk claimed that he was going to back out of the deal because of the lack of information about the number of fake accounts on the platform. In order to get Musk to close the deal, Twitter filed a lawsuit.
If the judge overseeing the lawsuit adjourned the case, Musk would go through with his deal to buyTwitter for $54.20 a share.
There are a few things that might have changed Musk's mind, but we can't get inside his brain to find out.
During the discovery process, there were some embarrassing text messages that showed how the deal fell apart and how the only way to fix it would be to take it over.
Things could get messy at trial. According to Eric Talley, a law professor at Columbia University, Musk was going to be facing a very unpleasant deposition that could potentially dredge up "extremely inconsistent statements" that could spell even more legal issues. It doesn't help that Musk's case relies on publicizing bad things about the company he could acquire
Who doesn't know? In a filing with the SEC, Musk stated that his offer was still valid and that he intended to close the deal at $54.20. It isn't necessarily an indication that it's agreeing to the new offer since it has been its stance for more or less the entire time.
It's hard to tell how much of a commitment Musk is making until his court hearing. She said it would be weird for him to publicly file with the SEC if he didn't really want to settle. Are you talking about Musk? I didn't think I could imagine.
There is some variation to the straightforward answer. According to the SEC filing, all of the publicly traded stock is being purchased by a company owned by Musk. Several other holding companies are involved in the deal, but they will most likely be folded into the micro-messaging service.
Saudi Arabia's Prince Alwaleed Bin Talal Bin Abdulaziz Alsaud is one of the people with billions invested into or tied up with this deal. You can see how much each entity has invested in a report from The Wall Street Journal. The Washington Post suggests that they may want to have some control over the platform in order to get a return on their investment.
There is a question of who will actually run the social networking site. It was reported earlier this year that Musk would be in charge of the company after the acquisition. The two have been fighting for months and it seems unlikely that Musk will let him keep his job.
It is not known if Musk still intends to act as the company's CEO or who will take his place.
Right now, it is up in the air. He expects the judge to signal whether or not she will allow anything to be frozen in time. He said that the machinery is still geared to trial on October 17th.
If the deal is done by October 17th, it won't be like Charlie Brown kicking the football, because it doesn't want to be like that. I don't think they'd agree to stay everything. He said that the Chancellor would not be able to schedule her schedule around the trial date.
He said that one or two items may be delayed, including Musk's deposition, but that the team has to continue to plan as if the trial will happen. He said that the trial would act as a stick to keep Musk from stalling.
According to the Wall Street Journal, the judge wants Musk to come up with a plan that will stop the trial by the end of the day.
It is not clear how long it will take before the deal closes. When Musk's financing agreements expire, there is an important deadline. It is possible that the whole thing will fall through if he does not re-up those agreements by that time. It would be a billion dollars richer, which is nice, but it would also have to remain a public company and figure out how to move forward after a year of chaos.
As for the other things that could trip the deal up, given who we are dealing with it feels like anything could happen, Musk could incur the wrath of the SEC, and aliens could invade, and so on. The deal isn't over until it's over.
Additional reports by Elizabeth Lopatto.
All Rights Reserved © 2024
