Opinion – Ronaldo Lemos: Twitter action against Musk is a new reality

The most fun and interesting piece of entertainment in recent times is not a movie, nor a series, nor a show. It is the document presented by Twitter in the lawsuit that the company is bringing against billionaire Elon Musk for refusing to go ahead with his takeover offer.

The play is not only interesting and well-made, but fun to read. It has drama, humor, irony and a supervillain. It works like the first bombastic episode of a reality show that is likely to last for a long time.

The first thing that stands out about the document is its clarity and lean narrative. Unlike the language spoken by lawyers and judges in Brazil, which is purposefully difficult and falsely far-fetched, Twitter’s complaint is enviably accurate. This illustrates not only the US legal tradition — which is actually simpler and more accessible than the Brazilian one — but also a desire for the text to be read by many people, including non-lawyers.

In other words, to beat Twitter, you’re going to need to win hearts and minds in a battle that is strongly legal, but also has a political component.

For those who haven’t followed the case closely, it’s worth a summary. Musk proposed to buy Twitter at an exorbitant price, 54% above its market value at the date of the offer. However, shortly after making his proposal, global markets changed completely. Interest rates rose in the US, and easy access to capital dried up. In addition, shares in Tesla, the main source of Musk’s wealth, have plummeted from their peak a few months ago. The same was true of Twitter stocks.

In short, Musk was left with a donkey skull in his hands. He took on the obligation to buy a company at an above-market value of $17 billion. In addition, he saw the possibilities of being able to finance his offer melt away to be able to pay the full price of $44 billion.

In other words, Musk made a gross mistake. A rise in interest rates was foreseeable on the horizon. To get rid of the obligation to move forward, he now alleges that Twitter did not present data necessary for the purchase, including a balance of the number of speech accounts and bots on the platform.

The document presented by Twitter demolishes each of Musk’s arguments. It is a text that paints the entrepreneur as an irresponsible billionaire. He goes so far as to say that his “attempt to run away from the business is a model of hypocrisy.” Indeed, the unsuccessful venture of acquiring Twitter plunged the company into chaos, leading to the departure of employees and executives. In addition, the fall in the company’s shares only increased.

What could happen in the future? Twitter’s price has dropped so low that there’s a possibility that another bidder will come along to buy the company. It wouldn’t be surprising in the current scenario.

Another possibility is the chaos caused by Musk making Twitter progressively unviable, leading to an increasing loss of market. An agreement is also possible.

Whatever happens, Musk got himself a headache. Perhaps this move will serve to set some limits on what unsuspecting billionaires can do.

It’s over Not having 5G in Brazil

Already Arrival of 5G in Brazil

It’s coming Delay, slowness and difficulties in the expansion of standalone 5G in the country