Tech

Elon Musk’s Twitter Change: Here’s Part of the Legal Challenges


The fact that Elon Musk suddenly faced a $44 billion (nearly 3,500,200 crore) deal to buy Twitter, reversing an earlier attempt to cancel that offer, came as a surprise even from the shrewd billionaire. , who likes to shock.

It sent the social media platform’s shares soaring on Tuesday and sparked alarm among some media watchdogs and civil rights groups about the kind of free speech that would develop. Twitter Below Musk.

However, the legal challenges Musk has faced in the three months since he announced that he intends to pull out of the deal continue to mount, increasingly shutting down exits to Tesla CEO.

Gambling, negligence, and potentially unsuccessful claims have undermined an already difficult withdrawal case. And then there’s the potentially embarrassing deposition scheduled for Thursday and what most see as a long-term opportunity to get pardoned before Chancery Court in Delaware in less than two weeks.

Musk said he would only agree to continue to be willing to buy back if that testing is deferred.

Here’s how the legal battle plays out:

What was Musk’s main reason for giving up on buying Twitter?

Musk bases his argument largely on the allegation that Twitter misrepresents the way it measures the level of “spam.” robota difference that could reduce the amount advertisers are willing to pay to appear on the platform.

But Prime Minister Kathaleen Jude McCormick, the court’s chief judge, is unlikely to buy it. As the two sides presented evidence before the trial, the judge seemed narrowly focused on the court’s mandate: on the merger agreement between Musk and Twitter, and whether anything has changed since it was signed in October. 4 can justify termination of the agreement.

A former Twitter security chief, fired earlier this year and turned out to be a whistleblower, seems to bolster Musk’s argument. Peiter “Mudge” Zatko, a respected cybersecurity expert, filed a complaint in July with federal regulators and the Justice Department alleging that Twitter misled regulators about the effort controls millions of spam accounts and its cyber defenses.

Still, any hope that Musk’s case will be bolstered by Zatko’s revelations is a “foresight,” said Brian Quinn, a professor at Boston College Law School, and ultimately , “it doesn’t really change the (legal) context in any significant way.”

Does Musk’s approach to buying Twitter hurt or help his case?

“He’s pretty cavalier,” Quinn said. Recently published text messages between Musk and others appear to be excited about Musk’s large stake in Twitter and the possibility of holding a seat on the board. It wasn’t until after Musk signed the merger agreement in late April that he conducted what is known as an appraisal, or close examination, of the company’s operations. Only then did he start complaining about the bot, Quinn said. That may not impress the judge as the right approach for someone buying a large company.

Why would Musk change his mind now?

Beyond Thursday’s test and drawdown, borrowing costs are steadily climbing as the Federal Reserve and central banks around the world try to contain soaring inflation. If Musk loses at trial, the judge can not only force him to close the deal, but also impose interest payments that make Twitter even more expensive for Musk than its current $44 billion price tag. Experts say interest costs could start to pile up in mid-September.

But of course, the deal has yet to be done and there are still legal loopholes that haven’t been passed. Given Musk’s track record and volatility, it would be a mistake to assume it’s tied in an arc.


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