Binance Gets Dragged In The Middle Of Twitter Versus Elon Musk Court Case
Earlier this year, Tesla CEO Elon Musk made a $44 billion offer to buy all of Twitter’s shares. The company’s board of directors was initially hostile.
But, since the acquisition seems to be falling apart, because of the opacity of the real proportion of fake accounts and other bots on the social network (as Musk now claims), Twitter, and especially its shareholders, show their dissatisfaction that the deal is not going ahead. They would have liked to be able to sell their Twitter shares at a big premium compared to their actual stock market listing.
Twitter would has now filed “a dozen subpoenas” as part of a legal action aimed at forcing Elon Musk to carry out this acquisition.
Among those subpoenas is Changpeng Zhao’s crypto exchange, Binance (still the biggest crypto trading platform in the world). It would appear that Binance was very supportive of the planned takeover of Twitter by Elon Musk, by providing half a billion dollars out of the 44 billion that the Tesla CEO needed to finance the takeover.
Bots versus real accounts
The center of contention still concerns the percentage of bots versus actual Twitter user accounts.
Musk claims that some 20¨% of the accounts on Twitter are bots, which would make it very hard to mold the social media giant in the way he wants to. Twitter itself has constantly claimed that only 5% of all accounts are bots.
Meanwhile Elon Musk’s lawyers are also sending subpoenas. The banks Goldman Sachs and JPMorgan have been summoned to give details of their financial advice shared with Twitter.
Musk furthermore stated this weekend that the deal can still go ahead as far as he’s concerned, provided that Twitter can indeed prove that the number of bots is only as high as it claims.
Good summary of the problem.— Elon Musk (@elonmusk) August 6, 2022
If Twitter simply provides their method of sampling 100 accounts and how they’re confirmed to be real, the deal should proceed on original terms.
However, if it turns out that their SEC filings are materially false, then it should not.
He hasn’t lost his sense of sarcasm yet.
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