Twitter wants deal closed before trial date
Musk’s attorneys formally ask a judge to stay the trial, which is set to start Oct. 17. The Musk team say a close would be possible on or around Oct. 28. However, Twitter says Musk must close the deal before proceedings start on the 17th. Twitter;
At a minimum…Defendants should be arranging to close on Monday, October 10. But they aren’t. Instead, they refuse to commit to any closing date. They ask for an open ended out, at the expense of Twitter’s stockholders (who are owed $44 billion plus interest), all the while remaining free to change their minds again or to invent new grounds to avoid the contract. Until Defendants commit to close as required, Twitter is entitled to its day in Court….Defendants can and should close next week. Until they do, this action is not moot [as Musk’s motion insisted] and should be brought to trial.
Musk’s lawyers:
Twitter will not take yes for an answer. Astonishingly, they have insisted on proceeding with this litigation, recklessly putting the deal at risk and gambling with their stockholders’ interests.
Musk-Twitter trial stayed, deal must close Oct 28
Delaware Chancery Court Judge Kathaleen McCormick agrees to stay the Musk-Twitter trial, giving Musk until 5 pm on Oct. 28 to close the deal. Otherwise, she will set another trial date for next month. The proceedings had been set for Oct. 17. Twitter had argued that Musk should close the deal before the trial date.
This action is stayed until 5 p.m. on October 28, 2022, to permit the parties to close on the transaction. If the transaction does not close by 5 p.m. on October 28, 2022, the parties are instructed to contact me by email that evening to obtain November 2022 trial dates.
Musk claims Twitter made whistleblower destroy evidence
Musk’s lawyers accuse Twitter’s top two lawyers, Vijaya Gadde and Sean Edgett, and Chief Privacy Officer Damien Kieran, along with CEO Parag Agrawal, of seeking to cover up the violations of the legal settlements with government regulators by ordering the Twitter whistleblower, Peter Zatko, to destroy 10 handwritten notebooks and deleted 100 computer files.
Twitter’s attempt to buy Mr. Zatko’s silence failed, but Twitter achieved its secondary aim of ensuring Mr. Zatko’s corroborating evidence would never come to light. [The document-destruction order deprived Musk’s legal team of] critical corroborating evidence of Mr. Zatko’s allegations, which would support his account of key meetings and conversations relevant to this case.
Musk spoke to Kanye before Twitter block
Musk says he spoke to Kanye West to express his concerns about the musician’s recent tweet about Jewish people. Kanye’s account was locked just a day after he returned to the platform for the first time in nearly two years.
Talked to ye today & expressed my concerns about his recent tweet, which I think he took to heart
Talked to ye today & expressed my concerns about his recent tweet, which I think he took to heart
— Elon Musk (@elonmusk) October 11, 2022
Zuckerberg: Musk Twitter deal ‘unclear’
Zuckerberg says he doesn’t know how Musk’s Twitter deal will turn out:
I don’t know. I think this is another one of these things that it’s really unclear how it’ll actually turn out. I think it’s interesting as a saga, like you’re saying, but I think even at this point, it’s not actually clear what’s going to happen.
Twitter: Musk under federal investigation
In a court filing, Twitter says Musk is being investigated by federal authorities over his conduct in his $44 billion takeover deal for the company. The company does not say what the exact focus of the probes is, nor which federal authorities are conducting them. The court filing asks Musk’s attorneys to provide documents that are being withheld, which Musk’s attorney’s say contain ‘privileged’ information. Twitter:
This game of ‘hide the ball’ must end.
An attorney for Musk:
[Twitter’s court filing is a] misdirection. It is Twitter’s executives that are under federal investigation.
Musk: ‘Obviously we’re overpaying for Twitter right now’
During Tesla’s third-quarter earnings’ call. Musk says that, while he is overpaying for Twitter now, it will be worth it in the long-term
I am excited about the Twitter situation. It’s an asset that has languished for a long time, but it has incredible potential. Although myself and the other investors are obviously overpaying for Twitter right now, the long-term potential for Twitter is an order of magnitude greater than its current value.”
The Twitter stock price on this day is $52.42, compared with Musk’s $54.20 offer.
Musk wants to fire 75% of Twitter staff
Elon Musk tells prospective investors that, after his purchase on October 28, he plans to get rid of nearly 75% of Twitter’s 7500 workers, reducing the staff to 2000. Musk has told investors that he plans to double revenue in three years, by reducing costs and tripling the number of users that can view ads.
In June, Musk said he didn’t see a reason low performers should remain employed. Twitter’s top lawyer sent out a note to all employees saying the company did not have any confirmation from Musk about his plans. Human resources staff at Twitter have told employees that they aren’t planning for mass layoffs, but documents show that extensive plans to cut staff and reduce infrastructure costs were already in place before Musk offered to buy the company. Those plans are currently on hold, until after the purchase.
Musk says Twitter deal will close on Friday
In a video call with bankers who are providing $13 billion in debt financing to his purchase of Twitter, Musk says that he will close the deal on Friday, 28 October. Musk has pledged to provide $46.5 billion in equity and debt financing for the acquisition, which covers the $44 billion price tag plus closing costs. Equity investors, including Sequoia Capital, Binance, Qatar Investment Authority and others have received paperwork for the financing commitment from Musk’s lawyers.
Musk has to comply with a Delaware court judge’s deadline to complete the transaction by the 28th. Twitter declined to comment.
Musk carries a sink into Twitter HQ
In a physical play on words, Musk walks into Twiter HQ carrying a sink
Entering Twitter HQ – let that sink in!
He also updated his Twitter bio to ‘Chief twitt’ and changed his location to Twitter headquarters.
Entering Twitter HQ – let that sink in! pic.twitter.com/D68z4K2wq7
— Elon Musk (@elonmusk) October 26, 2022
Musk: ‘Dear Twitter Advertisers’
In a tweet titled, ‘Dear Twitter Advertisers’, Musk says he bought the company to ‘help humanity’, that it must be ‘warm and welcoming to all’ and that ‘ advertising, when done right, can delight, entertain and inform’:
I wanted to reach out personally to share my motivation in acquiring Twitter. There has been much speculation about why I bought Twitter and what I think about advertising. Most of it has been wrong. The reason I acquired Twitter is because it is important to the future of civilization to have a common digital town square, where a wide range of beliefs can be debated in a healthy manner, without resorting to violence. There is currently great danger that social media will splinter into far right wing and far left wing echo chambers that generate more hate and divide our society.
In the relentless pursuit of clicks, much of traditional media has fueled and catered to those polarized extremes, as they believe that is what brings in the money, but, in doing so, the opportunity for dialogue is lost. That is why I bought Twitter. I didn’t do It because it would be easy. I didn’t do it to make more money. I did it to try to help humanity, whom I love. And I do so with humility, recognizing that failure in pursuing this goal, despite our best efforts, is a very real possibility.
That said, Twitter obviously cannot become a free-for-all hellscape, where anything can be said with no consequences! In addition to adhering to the laws of the land, our platform must be warm and welcoming to all, where you can choose your desired experience according to your preferences, just as you can choose, for example, to see movies or play video games ranging from all ages to mature.
I also very much believe that advertising, when done right, can delight, entertain and inform you; it can show you a service or product or medical treatment that you never knew existed, but is right for you. For this to be true, it is essential to show Twitter users advertising that is as relevant as possible to their needs. Low relevancy ads are spam, but highly relevant ads are actually content! Fundamentally, Twitter aspires to be the most respected advertising platform in the world that strengthens your brand and grows your enterprise. To everyone who has partnered with us, I thank you. Let us build something extraordinary together.
Dear Twitter Advertisers pic.twitter.com/GMwHmInPAS
— Elon Musk (@elonmusk) October 27, 2022
Musk completes takeover of Twitter
Musk completes his $44 billion takeover of Twitter.
the bird is freed
the bird is freed
— Elon Musk (@elonmusk) October 28, 2022
Later:
let the good times roll
🎶 let the good times roll 🎶
— Elon Musk (@elonmusk) October 28, 2022
Musk to form Twitter ‘moderation council’
Musk says Twitter will be forming a ‘content moderation council’ to deal with account bans and reinstatements.
Twitter will be forming a content moderation council with widely diverse viewpoints.
No major content decisions or account reinstatements will happen before that council convenes.
— Elon Musk (@elonmusk) October 28, 2022
Musk comments on people pretending to be laid-off Twitter workers
Musk makes a comment about two men who claimed they were software developers laid off by Twitter, one of whom identified himself as “Rahul Ligma”, a name that does not appear in Twitter’s Slack or email system. There is no evidence that the employee exists on LinkedIn, while the name ‘Ligma’ an internet hoax designed to elicit the response “lick my balls” from people who are in on the joke.
Software engineer and his buddy got fired from @Twitter #ELONMUSK #Twitter #twitterhq #fired #TwitterTakeover #elonmusktwitter #twitter pic.twitter.com/RkDGXm3nAH
— Rezowan Siddique Reza (@Rezowan_) October 28, 2022
Musk responds:
Ligma Johnson had it coming
Ligma Johnson had it coming 🍆 💦 pic.twitter.com/CgjrOV5eM2
— Elon Musk (@elonmusk) October 28, 2022
Musk: NYT Twitter severance payouts story is ‘false’
Musk denies a story by The New York Times [link] that he plans to lay off employees before the start of November to avoid having to make special payouts as part of their compensation deals.
This is false
This is false
— Elon Musk (@elonmusk) October 30, 2022
Twitter plans paid user verification
Musk says Twitter will revise its user verification process, without detail. Separate reports say that users would have 90 days to subscribe to Twitter Blue at $19,99 (up from $4.99) or lose their verified badges. Employees working on the project were told that they need to meet a deadline of November 7th to launch the feature or they will be fired. Musk:
The whole verification process is being revamped right now
The whole verification process is being revamped right now
— Elon Musk (@elonmusk) October 30, 2022
Musk later jokes about about the verification levels:
Oh no, all our diabolical plans have been revealed!!
— Elon Musk (@elonmusk) October 31, 2022
Musk: Twitter lawyers hid evidence
Musk shares internal Twitter communications that he says were hidden by Twitter’s lawyers, Wachtell, Lipton, Rosen & Katz. The messages were written by Yoel Roth, Head of Safety & Integrity at Twitter, apparently about Amir Shevat, Head of Product, alleging Shevat was using ‘fraudulent metrics’ and may be actively trying to hide the ball’, which was what Musk was accusing the company of. Roth’s messages:
But also lol if Amir continues to BS me my escalation route is “Amir’s OKRs are entirely based on fraudulent metrics ad he doesn’t care an may be actively trying to hide the ball”
Literally doing what Elon is accusing us of doing
Musk says:
Wachtell & Twitter board deliberately hid this evidence from the court. Stay tuned, more to come …
Wachtell & Twitter board deliberately hid this evidence from the court. Stay tuned, more to come … pic.twitter.com/CifaNvtRtt
— Elon Musk (@elonmusk) October 31, 2022
Musk later clarifies that he supports Roth:
I want to be clear that I support Yoel. My sense is that he has high integrity, and we are all entitled to our political beliefs.
We’ve all made some questionable tweets, me more than most, but I want to be clear that I support Yoel. My sense is that he has high integrity, and we are all entitled to our political beliefs.
— Elon Musk (@elonmusk) October 31, 2022
Musk dissolves Twitter’s board of directors
SEC filings [doc] show that Musk has dissolved Twitters Board of Directors and has become the company’s sole director.
Item 5.02: Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
On October 27, 2022, and as a result of the consummation of the Merger, Mr. Musk became the sole director of Twitter. In accordance with the terms of the Merger Agreement, effective as of the effective time of the Merger, the following persons, who were directors of Twitter prior to the effective time of the Merger, are no longer directors of Twitter: Bret Taylor, Parag Agrawal, Omid Kordestani, David Rosenblatt, Martha Lane Fox, Patrick Pichette, Egon Durban, Fei-Fei Li and Mimi Alemayehou.
Musk debates Twitter verification fee with King
After Stephen King complains that he will leave Twitter if he is made to pay $20 a month to keep his ‘blue tick’:
$20 to keep my blue check? F*** that, they should pay me. If that gets instituted, I’m gone like Enron
Musk debates the fee amount with him:
We need to pay the bills somehow! Twitter cannot rely entirely on advertisers. How about $8.
We need to pay the bills somehow! Twitter cannot rely entirely on advertisers. How about $8?
— Elon Musk (@elonmusk) November 1, 2022
Musk reveals $8 Twitter Blue details
Musk announces that the revamped Twitter Blue will cost $8; will grant a verified user blue tick; priorities in replies, mentions and replies; ability to post long video and audio; and have half as many ads. The price will be adjusted by country.
Twitter’s current lords & peasants system for who has or doesn’t have a blue checkmark is bullshit. Power to the people! Blue for $8/month. Price adjusted by country proportionate to purchasing power parity, You will also get:
- Priority in replies, mentions & search, which is essential to defeat spam/scam
- Ability to post long video & audio
- Half as many ads
And paywall bypass for publishers willing to work with us. This will also give Twitter a revenue stream to reward content creators. There will be a secondary tag below the name for someone who is a public figure, which is already the case for politicians.
Twitter’s current lords & peasants system for who has or doesn’t have a blue checkmark is bullshit.
Power to the people! Blue for $8/month.
— Elon Musk (@elonmusk) November 1, 2022