Posted on Jul 31, 2022 at 2:37pmUpdated August 1, 2022 at 7:42 am
Action reaction. Elon Musk’s reaction to the legal dispute between him and Twitter will not be long in coming. The sprightly Tesla boss has just filed a lawsuit against the microblogging site that sued him in mid-July. The reason ? The multi-billionaire has given up on completing his $44 billion takeover of Blue Bird.
In the 164-page document (still confidential) filed with the Delaware Court of Chancery (a court specializing in business law) dealing with the case, Elon Musk maintains his line of defense, arguing that Twitter is lying about its traffic numbers, which intentionally the The “Wall Street Journal” understands that the number of false reports is obscured.
In detail, he thus argues that the microblogging site overestimates the number of monetizable active users – that is, who can be suspended advertising on the platform – a key indicator for the group and closely followed by Wall Street.
The trial begins on October 17
For its part, Twitter claims that less than 5% of its active users are fake accounts. With their lawsuit, social media is trying to force Elon Musk to honor his takeover obligation, or at least receive the amount of the severance payment, which can be up to $1 billion under the terms of the deal originally ratified in two parts.
“After he held a public show to get Twitter to consider his offer […] Musk apparently believes he has the right to do so […] change their minds, destroy the company’s reputation, disrupt its operations, destroy shareholder value and walk away,” Twitter lawyers argued almost three weeks ago. The trial promises to be electrifying between the two camps. The beginning of the Hostilities have just been set for October 17 and the trial will take five days.
VIDEO. The quirky life of Elon Musk in 6 key dates
How do you deal with the increase in uncertainties?
Inflation, rising interest rates, Ukraine and now political uncertainty, the shocks are multiplying. To thrive in an increasingly complex environment, Les Echos’ editorial expertise is invaluable. Every day, our polls, analysis, columns, and editorials accompany our subscribers, helping them understand the changes transforming our world and preparing them to make the best decisions.
I discover the offers