Twitter wants to know from investors how Elon Musk behaved
Software

Twitter wants to know from investors how Elon Musk behaved before the deal failed

Institutional investors who helped Elon Musk raise funds to fund the Twitter acquisition deal have now started receiving subpoenas asking them to tell US law enforcement officials what they think about the deal and correspondence with the billionaire know, who announced at the beginning of July the refusal to fulfill the commitments made in April.

    Image source: Reuters, Dado Ruvic

Image source: Reuters, Dado Ruvic

As explained Reuters, the Twitter management, by asking investors to testify, wants to find out at what point he decided to give up the idea of ​​buying a social network, why he did it and if he plans to Ruining deal now because he doesn’t have enough cash to buy assets from Twitter at $54.20 a share. The subpoenas have not only reached institutional investors like Morgan Stanley, but also Elon Musk’s private partners, who have indicated their willingness to participate in the deal. The court hearing in this case is scheduled to take place in Delaware on October 17 and conclude in five business days.

Experts say Elon Musk can officially refuse to complete the deal on the terms outlined in April, even if the court forces him to do so. At the same time, the billionaire must prove that he does not have the necessary financial guarantees to buy Twitter on the original terms. Twitter lawyers also fear that Andreessen Horowitz, the company that initially oversaw the preparations for the deal, fired Robert Swan, who led it, after stepping down from the post of Intel CEO early last year. His place in the investment company was taken by Antonio Gracias, who had long been doing business with Elon Musk. Such a personnel reshuffle has alarmed the Twitter page.

By the way, some private shareholders of the company began to act on the side of Twitter management. One of them the other day filed a lawsuit to Elon Musk, who asked the court to force him to buy back the company’s stock at $54.20 a share. Because the lawsuit is collective in nature, other Twitter shareholders may join it in believing that the decline in the company’s stock price as a result of Musk’s actions caused them direct material harm.

RELATED TOPICS

About the author

Robbie Elmers

Robbie Elmers is a staff writer for Tech News Space, covering software, applications and services.

Add Comment

Click here to post a comment