Billionaire Elon Musk is currently in the heat over his legal acquisition of social media giant, Twitter.
In January, he began quietly buying shares until he became the largest shareholder in the company.
Once he has purchased a five percent interest in the company, he should immediately declare it to the public by filing with the Securities and Exchange Commission (SEC). However, Tesla’s CEO delayed his disclosure, which would have allowed him to continue buying Twitter, some speculated at a lower price, because investors were unaware of his significant interest in the company.
Elon Musk ‘Under Investigation’ For His Twitter Acquisition
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As reported by Deadline late Thursday night, a legal filing submitted by Twitter cites a document that claims Musk “is currently under investigation by federal authorities for his conduct in connection with the acquisition of Twitter.”
There were no specific details regarding the nature of the investigation, but financial analysts speculated that the probe was due to the SpaceX founder’s failure to disclose the five percent stake he bought in the company earlier this year.
After Musk finally announced his purchase in April, the Twitter board offered him a seat on their board in exchange for him to stop buying more shares in the company. Musk declined and instead proposed his own counteroffer: acquire the social media giant outright for $54.20 per share, or $44 billion dollars.
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However, the acquisition was not easy. Over the past few months, Musk has been vocal on the platform, tweeting that the deal was “on hold” due to the number of bots and spam accounts on the platform. Musk claims that the information the company reportedly gave him is insufficient and has claimed that the number of bot and spam accounts is higher than the five percent the company currently claims.
After Musk sought to “terminate” the deal completed in July, Twitter turned around and sued the 51-year-old entrepreneur. Musk filed his own countersuit, and a trial date is scheduled in Delaware Chancery Court for next week.
Twitter Slams Fixed Trials As ‘Invitation For More Damages And Delays’
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Just days before he was to be deposed, Elon Musk suddenly had a change of heart and agreed to buy Twitter after all. The social media giant refused to drop the lawsuit, which led Judge Kathaleen McCormick to agree to adjourn the hearing until 5pm on October 28 to seal the deal. If Musk is unable to finance and secure an acquisition by then, another trial date will be scheduled for November.
Lawyers for the social media company called the trial delay “an invitation to further damage and delay.” They warned that Musk might try to back out of the details, adding, “The defendants declared they intended to close after all. ‘Trust us,’ they said, ‘We mean it this time,’ so they asked to be released from the reckoning of his reward.”
However, Musk’s legal team quickly responded to Twitter, claiming that the company “will not take yes for an answer. Strangely, they have insisted on continuing this litigation, recklessly, putting the deal at risk and gambling with the interests of the holders their shares.”
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“Proceeding to trial is not only a huge waste of party and judicial resources, it will affect the ability of the parties to close the transaction,” they added.
In a recent interview with CNN, Alex Spiro, Musk’s lawyer, claimed that Twitter’s filing was just a harassment tactic after Twitter’s former security chief, Peiter “Mudge” Zatko, accused the social media giant of blatantly ignoring security flaws in its their platform.
“Twitter executives are under federal investigation,” Spiro told the outlet. “This malpractice was sent by Twitter to try and uncover their various wrongdoings for which they are being investigated.”
Elon Musk Is Asking Fans To Buy His New Fragrance So He Can Buy Twitter
The best fragrance on Earth!https://t.co/ohjWxNX5ZC pic.twitter.com/0J1lmREOBS
— Elon Musk (@elonmusk) October 11, 2022
To help fund his purchase, Elon Musk used Twitter to launch a perfume called “Burnt Hair.” According to Reuters, the product sold 10,000 bottles in just a few hours, raising over a million dollars, although some still doubt that the perfume actually exists.
musk tweeted“With a name like mine, getting into the fragrance business was inevitable – why did I fight for so long!?”
Please buy my perfume, so I can buy Twitter
— Elon Musk (@elonmusk) October 12, 2022
In follow up tweetsshe told her 108.7 million Twitter followers, “Please buy my perfume, so I can buy Twitter.”
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Source: thtrangdai.edu.vn/en/
