Elon’s trial for obtaining the social media company Twitter will start on the 17th of October. The Delaware court will decide whether Musk has the right to back off from the deal with only one issue at hand – the spam/fake accounts.
Elon is desperately trying to get out of the Twitter deal and he is using all resources at hand to do that. Lately, he subpoenaed his long-time friend and former Twitter CEO, Jack Dorsey. The court revealed this information on Monday.
Elon Musk Takes Former Twitter CEO To Court
Twitter and Elon are tied together in a legal battle after a whole whirlwind of happenings surrounding the deal. To put it in simple words, Musk tried to obtain the company and made an official offer, only to announce that he backs off after a short period. The backing off from the deal is due to Twitter allegedly failing to provide the documentation he seeks. In particular, the spam/fake account info.
From Twitter, they state that Elon is now experiencing ‘buyers remorse’. The true reason behind the backing off from the deal is not the information he seeks. It is the remorse of paying more than the company value.
The court case would determine whether Musk will proceed with the deal by any means. Can Twitter force him to proceed, or he can back off and not pay anything? While some are claiming that backing off with no penalties is possible, others claim that he will need to proceed with the deal, or at least pay a very high fee.
Before this actual subpoena, Twitter has subpoenaed several people that have connections to Musk, including Marc Andreessen and David Sacks, the CEO of PayPal.
After Musk made it public, spam and fake accounts gained a lot of attention from the public. People are getting more and more aware that spam bots are present on the platform and that they are more than 5%. At least Musk claims this. He had assembled a team that has calculated the bots on the platform. According to him, the numbers are as high as 20%.
Now both, Musk and Twitter will have to present documents to court including their method for obtaining the actual numbers.
Last week Musk had one minor victory in the whole process. The judge ruled that Twitter must provide documents with calculations from a former Twitter executive, responsible for obtaining such numbers. Since then, Twitter issued a request for all documents from Kayvon Beykpour to be gathered and presented to the court.
The Twitter deal is taking its toll on both Musk and Twitter. Tesla’s stock market price fell, and Twitter’s stock market price fell as well.
