“The party that has just begun is already over,” sang Sergio Endrigo. Elon Musk withdrew his offer from 44 billion dollars to buy Twitter, after a months-long saga that has angered investors and rocked the market. And for a party that ends, a long judicial battle is about to begin.
The president of Twitter, Bret taylor, said that the social media platform will sue Musk in Delaware to enforce the settlements. In the agreement, in particular, there was a "specific performance" clause: a provision that could force Musk to buy the company as long as he has financing provided to complete the agreement: and just in May the tycoon and owner of Tesla had declared by having obtained one just for this purpose.
The price of a very salty judicial epic
What are now the bumpy steps for a funeral that takes place even before a wedding? Even if he isn't formally "forced" to buy, Musk could face a $1 billion fine to walk away. A sanction that he is trying to evade by accusing Twitter of violating "several provisions" of the agreement, according to the letter announcing the termination of the offer.
“For nearly two months,” the letter reads, “we have sought data and information to make an independent assessment of the number of fraudulent or spam accounts on the Twitter platform.” According to Musk's team, Twitter never provided, or refused to provide, this information.
The judicial battle will "dance" precisely on this element. According to Twitter, fake accounts (bots used to spam) account for around 5% of the platform's over 200 million users. Musk believes there are many, many more. Many analysts think that this "casus belli" is Musk's pretext to withdraw from the agreement without paying penalties.
An earthquake for others and for oneself
Twitter may not be the only legal problem on Musk's path. The SEC, American Securities and Exchange Commission, could seriously punish him for his conduct which has destabilized both Twitter and his other companies.
Many companies. Many of you will have lost count: Musk runs Tesla, and this is well known. Then he has Neuralink, an artificial intelligence company. He runs the space travel company SpaceX and the tunnel construction company The Boring Company. For telecommunications he has in hand Starlink, and other companies that I don't mention.
It has already faced lawsuits from investors in the past for its erratic behavior and its effects on company shares. Because of his tweets (which reduced Tesla's value by $ 14 billion) he received a $ 40 million fine, and had to resign as chairman of the company's board of directors.
Do what he wants
What impact can these measures have on a man who, with his net worth of $ 224 billion, is now the richest in the world?
Lowercase. And this makes us fear a lot about the possibility of limiting the activities of a person capable of influencing the market so heavily. Because this is the question that is emerging after this incredible charade: is Musk there or is he there?
We'll find out: not soon, though. The judicial path is always long.
