Elon got himself into this mess, now he's looking for a way out. Blaming it on the bots isn't going to cut it though. He's going to have to buy his way out. The question is: at what cost?
The stakes are high for Elon.
If he goes ahead and buys Twitter at an over-inflated price, he’ll put his empire at risk as he leverages his Tesla pot of gold to pay for it. If he doesn't, he's going to have to manipulate the market to get the Twitter price up and minimise his exposure. That won't go unnoticed at the SEC!
Which way he turns, it looks like Elon is screwed in a deal of his own making!
Taking a Chance in the Court of Chancery
Here's the thing: Musk wants out of his contractual commitment to buy Twitter.
Twitter, who have spent $33 million just dealing with Elon's disruption, is having none of it. So, lawyers for Twitter and Elon Musk met in court last week.
The aptly named Court of Chancery in Delaware, to be precise. The purpose of the hearing was to set the date for the full hearing on whether Elon has to honour his contract to buy Twitter.
- Musk wanted to delay any hearing until the spring of 2023.
- Twitter wanted to get on with it this September.
- The Judged set the date for October.
Round 1 to Twitter: Meanwhile, Twitter shareholders (inc me), get to vote on Elon's $54.20 offer at a special meeting on 13th September.
To Bot or Not To Bot? Musk’s claim is that Twitter is full of more bots and spam accounts than they ever let on. Musk claimed that Twitter misled over the number of bots and spam accounts across the social media platform. Sounds straightforward, but lets take a look at this: