Explained: Why does Elon Musk want to buy Twitter again?
PremiumEarlier, Elon Musk claimed that Twitter greatly exaggerated how it calculates the number of 'spam bot' accounts
The news that Elon Musk has decided to move forward with his $44 billion offer to acquire Twitter may have come as an unexpected surprise from the Tesla CEO who enjoys shocking people. It caused Twitter's stock to skyrocket and alarmed several media watchdogs and civil rights organisations concerned about the type of free expression that might flourish on the social media site under Musk.
It was, however, expected by those who had followed the protracted legal struggle in which Twitter sought to force the world's richest man to complete the takeover that he had initially tried to cancel. Musk has faced a significant legal challenge in the months after making his initial offer to purchase Twitter in April.
His hand appeared weak for the trial scheduled to take place in Delaware Chancery Court in less than two weeks due to a combination of bets or mistakes and possible advantages that didn't materialise. He claims that, in order for the agreement to go through, the trial must be postponed. The lawyers for Twitter also began taking Musk's deposition in the matter on Thursday.
Why did Elon Musk back out earlier?
Musk's claim that Twitter greatly exaggerated how it calculates the number of "spam bot" accounts that are useless to advertisers served as the main foundation for his case.
Nevertheless, it seems that the court's chief judge, Chancellor Kathaleen St. Jude McCormick, wasn't buying it. The judge seemed to concentrate intently on the merger agreement between Musk and Twitter and whether anything had changed since it was signed in April that would warrant cancelling the deal as the two sides presented their evidence prior to the trial, narrowly following the court's directive.
Why does Elon Musk want to change his mind now?
The potential for rising interest rates was on the clock, as well as the upcoming trial and Musk's deposition on Thursday. If he had lost the case, the judge might have ordered him to complete the sale, but he might also have been charged interest. According to experts, the interest presumably started to increase around the middle of September.
The purchase hasn't been finalised yet, and there are still legal requirements to satisfy. It would be incorrect to think that everything is neatly wrapped up given Musk's track record and instability.
(With agency inputs)
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