About Elon Musk
A corporate tycoon and businessman with an estimated net worth of roughly US$242 billion. Elon Reeve Musk FRS was born on June 28, 1971. In addition to co-founding Neuralink and OpenAI, he is the founder, CEO, and chief engineer of SpaceX, an angel investor, the CEO, and the product architect of Tesla, Inc., additionally to The Boring Company’s promoter. According to both the Bloomberg Billionaires Index and Forbes’ real-time billionaires list, Musk will be the richest person in the world on July 25, 2022, with an estimated net worth of roughly US$242 billion.
Matter Between Twitter and Elon Musk
Musk has been a frequent user of Twitter since he first signed up for the service in 2009. On June 2022, he had amassed more than 100 million followers there. He shares memes, advertises his business. He shares his views on current political and cultural concerns.
Musk first showed interest in acquiring Twitter in 2017. In January 2022, Musk began accumulating Twitter shares, achieving a 5 percent ownership in the firm in March. Musk became Twitter’s top shareholder when he amassed 73,115,038 shares by April, accounting for 9.13 percent of the company’s total shares, which were then valued at $2.64 billion. In violation of US securities laws, Musk has to submit certain documents in 10 days of his stake passing 5% to the SEC but he failed to do so.
The highest intraday increase in Twitter share price since its IPO on April 4, 2013, when Musk publicly declared his ownership in an SEC 13G filing. People came to know about Musk buying sizeable stake in Twitter company by the way of Musk’s tweets from March, in which he questioned Twitter’s commitment to free speech and discussed creating a competing social media platform, after the tweets says that Musk has brought 7.5 percent of Twitter.
Furthermore, on April 4, Musk was added to the BOD of Twitter after he agreed to the agreement and forbid him from acquiring more than 14.9% of the company. On the other hand, Musk made an attempt to take all the shares of twitter at a price of $54.20 per share on April 13 with an offer of $43 billion to takeover Twitter.
In response, BOD of Twitter passed a shareholder rights plan for the people to make it more difficult for them to own more than 15% of the business without the board’s consent. After a week, a total of $46.5 billion was given to Musk as capital. This includes the loan amount of $12.5. Furthermore, this loan amount is guaranteed by the stock of Tesla. He also got $21 billion as equity investment.
Therefore, by the end of that day, Musk has successfully come up with $44 billion offer. Musk announced that the acquisition was “on pause” exactly one month after he had first announced it.
Next day, the stock market value of Tesla fell by more than $125 billion. This resulted in Musk losing over $30 billion in net worth. After criticising Twitter boss Vijaya Gadde’s rules in a later tweet to his 86 million followers, some of them harassed Vijaya Gadde. A report says that 10% decline in share price of Twitter was seen as 5% of the daily users were fake.
Despite the fact that, he was still committed to the acquisition, he sent notice that the agreement is terminated in July. Therefore, the Board of Directors of Twitter pledged to hold him accountable for the transaction. On July 12, 2022, twitter filed a formal lawsuit against Musk in the Chancery Court of Delaware. It alleged Musk for breaking the terms of a contractual contract of buying the company.
Judge Sets October Trial To Decide Musk’s $44 Billion Deal
Elon and Twitter will go on trial in October to determine whether the billionaire must complete the $44 billion acquisition of the social media business, according to a ruling made on Tuesday by a Delaware judge.
This month, this decision was the first in a lawsuit. Twitter brought to compel Musk, the richest man in the world, to complete against the Twitter deal. Musk agreed to purchase Twitter in April, but he recently stated that he wants to cancel the agreement. Twitter has asked for a trial date in September for resolving the matter. Whereas, Elon has asked for a trial date in February.
The decision of the court was against Musk and it granted no further time to Musk to press the business and seek an alternative to the agreement. Furthermore, as per the ruling of McCormick, the date of the trial will be decided as per the schedule of court and lawyers. But, the trial is expected to last for five days.
Musk decided to purchase Twitter and pledged to lead private business because he saw great potential in the business. A few weeks later, though, he began to gripe that Twitter was impeding his attempts to determine the spam users. Also, the company was concealing crucial information from him.
When the stock market dropped, Musk reportedly musk was looking for something to back out of the purchase, according to reports on Twitter.
After Musk decided to purchase Twitter and later on refused the agreement, the case has been filled against him. Therefore, now the date of Twitter matter has been set for October by the court. Both Musk and the Company will be present for the trial before the court.