Tech

Elon Musk’s request to delay Twitter trial granted, but purchase must be completed by October 28

In a nutshell: Elon Musk and Twitter won’t be suing each other ten days after the world’s richest man agreed to buy the platform for its original price of $54.20 a share, or $44 billion. The caveat is that the transaction must be completed by October 28th; otherwise, the trial will take place in November.

The seemingly never-ending saga that is Musk’s ongoing spat with Twitter got another twist on Monday when the Tesla boss made a U-turn and decided to buy the company at the originally agreed price, nearly three months after he pulled out of the acquisition due to for the accusations. There are far more fake accounts on the site than Twitter claims.

There is a suspicion that Musk has changed his mind again, as it is increasingly likely that the law will side with Twitter in the upcoming legal battle.

But it hasn’t been smooth sailing since Musk has decided he’ll pay the $44 billion Twitter wants. Yesterday, he asked Presiding Judge Kathleen McCormick to stay all litigation as he hopes to secure funding for the deal. McCormick now agreed to the request.

A spokesman said Musk is still finalizing the $12.5 billion debt financing package needed to complete the purchase, but it won’t be ready until October 17. It is speculated that Musk could sell more of his Tesla shares to help fund the deal if necessary. Both parties have until 5:00 pm on October 28 to complete the transaction, otherwise litigation will begin sometime next month.

Interestingly, Musk’s lawyers argued that the platform would not accept “yes for an answer” and would not agree to stay the lawsuit.

Given everything Musk has been through trying to delay the lawsuit, Twitter isn’t 100% sure it’s not another billionaire tactic – the company said its delay request includes provisions that are “an invitation to further harm.” and delay.” But then he has good reason to be suspicious. The Twitter post claims that a spokesman for one of Musk’s creditor banks said they had received no notice as of yesterday morning that he intended to close the deal.

“Defendants can and should close the case next week,” Twitter’s lawyers said. “Until they do so, this action is not controversial and should be taken to court.”

It looks like Musk’s takeover of Twitter isn’t a foregone conclusion, especially if the debt financing doesn’t materialize. There may be several more chapters in this saga.

h/t: The keeper




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