Elon Musk backed out of his deal to acquire Twitter, and the company filed a lawsuit against him as a result. The Twitter vs Elon Musk trial has already been scheduled. Elon just sold $6.9 billion of Tesla shares in the event that Twitter prevails in its legal battle to force Musk to acquire the social network for $44 billion.
Variety reports that, according to SEC regulatory filings, mega-billionaire Elon Musk sold a share of Tesla worth about $6.9 billion on August 5. The tech mogul then tweeted that he raised the money in case Twitter wins its lawsuit to force Musk to buy the social network for $44 billion. Musk tweeted about the stock sale on Monday night.
“In the (hopefully unlikely) event that Twitter forces this deal to close and some equity partners don’t come through, it is important to avoid an emergency sale of Tesla stock.”
Musk sold around $8.4 billion in Tesla holdings in April, reportedly to fund the Twitter acquisition. At the time, he wrote that he had no more Tesla stock sales planned. Musk stated on Monday that if the Twitter deal doesn’t close, he would buy shares in Tesla. He now owns about 15% of the shares in Tesla.
Musk called into doubt Twitter’s long-held assertion that spam and fake accounts are less than 5% of total active users. Last month, he notified the company that he was canceling the deal due to Twitter’s alleged inability to prove the metric. On July 12, Twitter filed a lawsuit against Musk, seeking to force the world’s richest person to complete his $44 billion takeover of the company.
Musk may potentially attempt to settle the case before it goes to court in October. According to Ives’ estimates, Twitter stands to get $5 billion to $10 billion from Musk. To get the latest updates, keep an eye on Thirsty.
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