Elon Musk reverses his decision to reverse his decision to purchase Twitter.
After months of trying to get out of the original deal, Musk again offered to buy Twitter for $54.20 a share — the same price he agreed to pay in April.
That’s bad news for the best show in the world economy, which was set to open in a Delaware courthouse on Oct. 17 in a showdown between the world’s richest man and Twitter. Currently, it is likely that the trial will not take place at all.
However, bad news for Delaware is good news for Twitter. If the two sides shake hands (again), Twitter will be able to avoid an expensive lawsuit, all while securing a $44 billion purchase. Many consider this price to be particularly generous.
Still, it is not certain that this is the end of the story. Twitter needs to approve Musk’s new proposal, and it refuses to hint at what its next step will be.
So why did Musk change his mind after changing his mind? A probable reason, according to several reports, is that Musk realized that he was probably going to lose his trial. He needed to prove that the bot issue was a material adverse effect allowing him to get out of the contract he signed, but his legal team lost confidence after suffering defeats in pre-trial decisions.
How did we get here? A lot has happened since Musk and Twitter first agreed on their deal in April, and it’s all come back to the same point. A brief timeline:
- Musk tried to back out of the deal in July, claiming he had been misled by Twitter management about the bots’ share of the platform. Twitter then sued Musk to compel him to buy the company.
- In August, Twitter’s former security chief dropped a bombshell when he claimed the company’s leadership had deliberately ignored massive security problems. Musk was quick to use these claims as ammunition for his case.
- Last week, juicy text messages between Musk and a series of business moguls were published before the trial, revealing the celebrities who pushed him to buy Twitter (Joe Rogen, Jack Dorsey, Gayle King, Larry Ellison and more).
What’s the next step? If Twitter agrees to Musk’s new proposal, what happened this year is just the prologue to an era in which the world’s richest man owns one of the world’s most influential social networks.
What would $TWTR look like under Elon Musk? Since April, the world’s richest man has given us some clues about his priorities from an edit button to tackling bots. Here’s what Musk could do to change the social media platform: pic.twitter.com/J4k3iIxMgg
— Ed Ludlow (@EdLudlow) October 5, 2022
The big winners: the lawyers
The conflict between Twitter and Musk led to months of legal battle between two of the most powerful law firms in the US.
Twitter called Wechtel, Rosen, Lipton and Katz – an elite firm in New York where partners earn about $8 million a year, according to Bloomberg. On Musk’s side is another leading Wall Street company with the catchy name Skadden, Arps, Slate, Meagher and Flume.
Both sides could rake in eight-figure sums, he toldCNN Peter Ladig, a lawyer from Delaware with extensive experience in the court where the trial was expected to be held
The bill for both sides combined could easily reach the low to mid-eight figures, said Peter Ladig, a Delaware attorney with extensive experience in the court where the Musk-Twitter battle will take place. What does eight digits mean? At least $10 million. at least.