Elon Musk’s acquisition of Twitter was to be one of the biggest buy-outs in corporate history. Now it threatens to become one of the ugliest disputes
acquisition of Twitter was to be one of the biggest buy-outs in corporate history. Now it threatens to become one of the ugliest disputes. Twitter is expected to file a lawsuit against Mr Musk this week in a Delaware court, suing him for pulling out of the $44bn deal. Meanwhile the world’s richest man—and the holder of Twitter’s sixth-most-followed account—has taken to the internet to engage in battle by meme.
When Twitter’s sale was agreed on in April, Mr Musk’s bid of $54.20 per share looked cheap to some—including Twitter’s board, which at first wasn’t interested. No sooner had the deal been struck than tech markets crashed. On July 11th Twitter shares were trading at under $33, having shed another 10% in value as some investors who had clung on to the hope that Mr Musk would go through with his purchase threw in the towel.
Lately Twitter has been bolder, with some success. “Spaces”, a live-audio feature, has proved popular enough to largely kill off Clubhouse, the briefly fashionable app that inspired it. And it has pushed into longer-form content with the acquisition of Revue, a Substack-esque paid-newsletter platform.
With the ad market looking vulnerable to the weakening global economy, the company is looking to diversify its sources of revenue, nearly 90% of which come from advertising. It has launched Twitter Blue, a subscription option that gives users some modest benefits for $2.99 a month. Mr Musk said he wanted to go further on subscriptions, tweeting in April that Twitter Blue users should have an ad-free experience.
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