Five points to understand the saga of Elon Musk’s failed Twitter purchase

Five points to understand the saga of Elon Musk’s failed Twitter purchase

A bruising procession, an engagement announcement and a brutal separation: for three months, Elon Musk sowed doubts, with advances and setbacks, around the possible acquisition of the twitter which was finally canceled on Friday (15) by the tycoon.

the purchase of shares

On April 4, Elon Musk revealed in a document filed with the US Securities and Exchange Commission (SEC) that he had acquired at least 73.5 million shares of Twitter common stock, 9.2% of its market value. from the company.

The following day, the social network’s CEO, Parag Agrawal, announced that the head of electric car maker Tesla had joined Twitter’s board of directors. But on April 10, he reported that Elon Musk has resigned from being part of it.

The ofert

The businessman put on the table an offer to buy the entire company at a price of $54.20 per share, a proposal revealed on April 14 in a filing filed with the SEC. It was “his best and last offer”.

Twitter initially resisted, announcing on April 15 that it had passed a so-called “poison pill” clause, under which the Californian group was willing to sell its shares to all other shareholders to prevent Musk from buying them.

But the group’s management ended up giving in and, on April 25, announced a definitive purchase agreement by the businessman of South African origin.

the funds

On April 29, the SEC revealed that Musk sold 9.6 million shares of Tesla for about $8.4 billion.

On May 5, the executive said he had also raised $7.14 billion in funding, thanks to investors such as Oracle co-founder Larry Ellison and Saudi prince and businessman Al Walid bin Talal.

the doubts

On May 13, Musk said he was canceling the offer, due to his concern about the number of fake accounts on the social network causing the group’s share price to drop 20%. Some time later, he declared that he was still “committed” to buying the company.

On May 16, he responded to Parag Agrawal, who was trying to explain on Twitter the measures taken to combat fake accounts, with a poop emoji.

On June 6, it withdrew its offer again, claiming that the social network “actively resists” its requests for information about spam and fake accounts – something the platform has categorically denied.

On June 16, he met with Twitter employees. In addition to assuring them that she aimed to reach one billion users, she reiterated her desire to reduce moderation on the network, raising concerns among employees.

the resignation

Finally, on July 8, the Tesla and SpaceX boss informed Twitter that he was canceling the deal, due to “false and misleading” information about the company. In response, Twitter’s board of directors announced a lawsuit to enforce the terms of the deal.

On July 12, arguing that Elon Musk’s strategy is “a model of hypocrisy” and “bad faith,” Twitter filed its lawsuit in a corporate law court in the state of Delaware. A first hearing on the matter should be held this Tuesday.

Source: AFP

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