New offer from Elon Musk for Twitter, action suspended

Elon Musk offered Twitter to buy the social network at the initial price, according to press reports, two weeks before the trial scheduled between the two parties on this eventful acquisition.

Twitter stock trading was suspended Tuesday, October 4 on the New York Stock Exchange “waiting for information” after a Bloomberg article which revealed this new takeover offer from the boss of Tesla. The quotation had been suspended for the first time for 5 minutes, and the title had soared up to + 18%, before being stopped again, at + 12.7%.

A close deal?

According to the economic news agency, Elon Musk sent a letter to Twitter on Monday, offering to acquire the platform for $54.20 a share, the price he originally offered to the company. spring and that the board of directors had finally accepted.

According to CNBC, the deal could be finalized as early as Friday or Monday. The two parties had signed a contract at the end of April, but Elon Musk unilaterally reneged on this agreement in July. The group at the blue bird had then launched lawsuits to force him to honor his commitment, and everything indicated that he was well positioned to win.

Fake accounts

“It’s a clear sign that Musk recognizes that his chances of winning against the board in a Delaware court are very slim and that the $44 billion buyout was going to have to happen one way or another.”reacted the analyst Dan Ives of Wedbush Securities.

Elon Musk had bombarded Twitter with criticism before and after the takeover deal was signed, accusing the platform of censoring users and failing to sufficiently crack down on spam and fake accounts. He justified his backtracking by saying that the proportion of automated accounts on the platform was well above the 5% figure put forward by the San Francisco company.

Faced with Twitter’s complaint, the president of the Delaware specialized court granted the company a quick trial, while Elon Musk wanted to wait until next year and was asking for astronomical amounts of data. The trial, if maintained, should theoretically take place from October 17 to 21.

Security failures

The Musk clan seemed to have gained a point when Peiter Zatko, the ex-Twitter security chief who was fired in January, accused the group of major security breaches in late August, in a report submitted to US authorities. But during preliminary hearings with the judge, his lawyers seemed to struggle to substantiate the accusations on the false accounts.

A Twitter attorney pointed to two reports by data analytics firms hired by the businessman, Cyabra and CounterAction, which put the rate at 11% and 5.3%, respectively. “None of these reports even remotely support what Mr. Musk said to Twitter and the world in his July 8 letter”asserted the lawyer, Brad Wilson, during a hearing.

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