An impossible love

07/14/2022 | 11:45am

This is the story of an impossible love. That of a toxic billionaire suitor, and a distrustful but not indifferent social network. Like any love story, there are ups and downs, games of seduction and attempts to know one another. But when the other half fails to meet the demands of the suitor, it sometimes decides to quit the chase. This is the story of Elon Musk's failed takeover of Twitter.

I love you...
A little:
On March 14, 2022, Elon Musk acquires a 5% stake in Twitter. He then has 10 days to publicly declare his position. However, he takes 21 days to disclose his stake. 21 days later, on April 4, Musk published a document to the SEC (US regulator) indicating a position, not of 5%, but of 9.2% in Twitter, making him the largest individual shareholder of the social network. The result? Twitter's share price climbed 27% in one day. Musk later agrees to join the board of directors.
A lot: 
On April 10, Musk announced he was declining to join the board, with Twitter CEO Parag Agrawal saying "it's for the best." Only 4 days later, on April 14, Musk announced his willingness to buy the social network for $43.3 billion. The next day, the board of directors unveiled a "poison pill", allowing shareholders other than Musk to acquire new shares in Twitter at a derisory price, which is intended to dilute the position of the eccentric billionaire. 
The following week, on April 21, Musk said he had raised more than $46 billion in financing for the acquisition of Twitter, and said he was ready to negotiate with the board. Four days later, Twitter accepted Musk's offer at $54.20 per share, valuing the company at nearly $44 billion. A clause of $1 billion is written in the file in case one of the parties breaks the acquisition process.
Wait a minute, not so much actually:
Elon Musk announced on May 13 on twitter that the transaction is "on hold", waiting for the real figures of fake accounts and bots on the network, which he wants to represent less than 5% of all accounts. However, he says he is still determined to proceed with the acquisition. Three days later, Parag Agrawal unfolds a long list of tweets about the problem of fake accounts. Musk's response? A poop emoji. The next day, he persists and says the acquisition can't proceed until he has the necessary information, unlike Twitter, which says it's "committed to closing the transaction at the agreed price and terms as quickly as possible."
No more:
On June 6, Musk is now threatening to pull out of the Twitter merger deal altogether because the company committed a "clear material breach" of its obligations by not providing him with information about bots and fake accounts. In a letter written by his lawyers to Twitter executives, it states that "Musk believes that Twitter is transparently refusing to comply with its obligations under the merger agreement, reinforcing suspicions that the company is withholding the requested data." A month later, on July 8, Musk says he is terminating the acquisition agreement because of "false and misleading" information, believing that Twitter has failed to meet many of its commitments. Twitter President Bret Taylor issues a tweet the same day stating that he intends to close the acquisition on the previously signed terms, arguing the case in Delaware's Court of Chancery. On July 12, Bret Taylor announced that "Twitter has filed a lawsuit in the Delaware Court of Chancery to hold Elon Musk to his contractual obligations."
And just like many love stories, it ends in court. To be continued...

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