Could Elon Musk have turned into a messenger of peace? After his high-flying recommendations to end the war in Ukraine, the multi-billionaire is campaigning to take the path of appeasement with Twitter. However, the date was written in all the diaries of tech enthusiasts: on October 17, very precisely in ten days, a gargantuan lawsuit was to oppose the businessman to the social network. It was without counting on yet another reversal of the multi-billion dollar weather vane. After announcing this week that he finally wanted to complete the takeover of the platform, Elon Musk managed to adjourn the legal battle on Thursday.
Is the octagon of the century therefore cancelled? Not quite. The judge in charge of litigation who validated this decision, Kathaleen McCormick, gave a deadline: October 28, 5 p.m. (11 p.m. in France). If, after this date, the boss of Tesla has still not released the greenbacks to acquire the network, the trial will return to the agendas in November this time. A few hours earlier, the multi-billionaire’s lawyers had asked for the suspension of the lawsuits initiated by Twitter to force their client to honor the acquisition agreement.
A request also made Monday, in the new about-face of the businessman. In a document sent to the Security Exchange Commission, he announced that he finally wanted to conclude the transaction at the price initially agreed (44 billion dollars). But on one condition: that the company put an end to its lawsuits. An unsurprising request: Elon Musk was far from starting as a favorite before the Delaware Court of Chancery.
Between his public attacks on Twitter, the recent and embarrassing revelation of his text messages regarding the takeover, and the convoluted reason given for breaking the contract (the number of fake users the network allegedly underestimated), the entrepreneur has every interest in solving the matter amicably. Or at least push her away to bolster his defense. So, according to Ann Lipton, a law professor at Tulane University, the 51-year-old “score a point”. “He clearly wanted to delay the procedure and avoid his testimony”which has already been postponed several times.
An invitation to “cunning”
Suspicious, Twitter’s lawyers had however opposed the adjournment of the trial requested by the opposing party, qualifying this proposal “an invitation to more cunning and delay”. A move that took many observers by surprise, as Twitter seemed to have the upper hand so far. The law of Delaware, where this type of conflict is usually settled, promotes the respect of contracts.
In their motion, Elon Musk’s lawyers note that “Twitter refuses to end lawsuit due to theoretical possibility of future failure to complete funding”. But “this failure did not occur at this stage”they point out. “On the contrary”the creditors indicated “be prepared to honor their obligations”say the lawyers. “Twitter’s groundless speculation has been refuted by the banks themselves.” They believe that their client “agreed to do” what the company demanded.
A rather daring argument if we go back to the history of the saga. Twitter’s advice counters: “At many times”the Musk clan “failed to comply with its obligation to use its best endeavors to complete the transaction”. Before adding: “For months, (the opposing party) has advanced increasingly implausible accusations to delay the trial […]accusations that appeared to be unfounded” during the preliminary hearings, they asserted.
Where is the 44 billion dollars?
“Now, on the eve of the trial, they say they want to conclude. […] “Trust us”, they say, “we are serious this time”», mocked the social network. Elon Musk’s lawyers have argued that the most likely outcome in their view would be “let the debt be financed”in which case “shareholders will get their money much faster than if Twitter wins the lawsuit, and then the appeal […] a process that could take months.
But will the boss of SpaceX only manage to release the promised 44 billion? On this point, the mystery continues. Only this week, according to Reuters, two investment funds withdrew from the discussions. In all, with the departure of Apollo Global Management and Sixth Street, Elon Musk sees players with 500 and 60 billion dollars in assets under management beating a retreat.
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