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In 2021, Twitter posted total worldwide revenue of more than $5 billion.
In April, Elon Musk agreed to pay $44 billion for the site.
The drama that has existed for a few months involving the names of Twitter and Elon Musk continues to take another course with the passing of days. This Monday it was announced that the hedge fund Greenlight Capital said he took a new share on Twitter last month, when the social media company sued to force Elon Musk to buy it, after the billionaire businessman said he had changed his mind about the deal.
Twitter is one of the most popular social networks in the world of the internet around the world, that’s why I agree with data from its annual reportrecorded total worldwide revenues of more than 5 billion US dollars, compared to the three thousand 720 million dollars of the previous year.
Given this, since May the discord between Twitter and the South African tycoon and CEO of Tesla has been in public opinion, after he approved the purchase of the social network for 44 billion dollars and then discarded that offer for being in disagreement with some functionalities of the digital platform.
This hedge fund buys a stake in Twitter
Even after the billionaire businessman, considered by Forbes to be the richest man in the world, said he had changed his mind about the deal, hedge fund Greenlight Capital recently reported that it took a new stake in Twitter when the social media company sued to force Musk.
Greenlight founder David Einhorn wrote to investors that his hedge fund had taken the position, paying an average of $37.24 for the shares.
“At this price, there is a $17 per share upside if TWTR prevails in court and we think there is a $17 per share downside if the deal goes bust. So we’re getting a 50-50 chance of something that should happen more than 95 percent of the time.” the letter said.
Despite that news, released this Monday, August 1, Twitter shares fell 2.5 percent to $45.26.
In that sense, Einhorn, whose company gained 8.4 percent during the second quarter while the S&P500 index fell 16 percent, has a long history with Musk after betting, for years, that shares of electric carmaker Tesla would fall. As also the two men have often argued on Twitter.
Now Einhorn is back for round two with Musk shortly after Twitter on July 12 sued Musk in Chancery Court in Delaware to complete the $44 billion takeover, accusing the billionaire of refusing to honor his promises. obligations to Twitter “because the deal no longer serves their personal interests.”
Likewise, Einhorn also states in his letter that over the years, the court has developed case law related to merger agreements and the “The resulting precedent and clear understanding of buyers’ contractual obligations has created a great deal of predictability in this area.”
Einhorn argues that the Delaware Court, the highest commercial court in the United States, has grounds to compel Musk to complete the purchase. “If you let Musk off the hook, you’ll invite a lot of future buyers to remorse lawsuits.”he adds.
As he also said he wrote a few years ago, half jokingly, that “the accepted reality seems to be that Elon Musk is above the law.” In a few months, the Delaware Court will rule.
This new movement is in addition to Musk’s response last Friday to counter sue Twitter, escalating his legal battle with the company over his abandoned deal.
In conclusion, the movements made in many industries in the world, especially technology, are usually of great importance for many markets, since they can have repercussions on the figures of other companies or even on the world economy.
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