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Elon Musk says ‘I’m rubber, Twitter’s glue’ after social media company ‘blames’ him for declining revenue

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Elon Musk has said that he’s “rubber” while Twitter is “glue”, in what appears to be a dismissive response to the social media company’s statement about him in its announcement of its quarterly results.

Twitter’s revenue decreased by 1 per cent in its second quarter, “reflecting promoting industry headwinds related to the macroenvironment in addition to uncertainty related to the pending acquisition of Twitter by an affiliate of Elon Musk”, said the corporate.

Subscription and other revenue totalled $101m (£84m), a decrease of 27 per cent yr on yr, while net loss was $270m (£225m), representing a net margin of minus 23 per cent.

“Given the pending acquisition of Twitter by an affiliate of Elon Musk, we won’t host an earnings conference call, issue a shareholder letter, or provide financial guidance along side our second-quarter 2022 earnings release,” Twitter said.

Regarding the acquisition itself, Twitter said that “representatives of Mr Musk delivered a notice purporting to terminate the merger agreement. Twitter believes that Mr Musk’s purported termination is invalid and wrongful, and the merger agreement stays in effect.” The corporate has commenced litigation against Mr Musk, and an expedited trial was granted to it earlier this week, scheduled for October 2022.

“The precise timing of completion of the merger, if in any respect, can’t be predicted since the merger is subject to ongoing litigation, adoption of the merger agreement by our stockholders and the satisfaction of the remaining closing conditions,” it said.

In response to Twitter “blaming” Mr Musk for the autumn in its earnings, Mr Musk replied: “I’m rubber, they’re glue”. This appears to have been a reference to a playground retort that rejects an accusation and applies it as a substitute to the party making it.

The saga behind Mr Musk’s purchase of Twitter began when Mr Musk bought 9.2 per cent of the corporate, which is price almost $3bn (£2.3bn), on 4 April 2022.

The next day, Mr Musk said he would join the corporate’s board. After six days, Mr Musk reversed his decision, before making a proposal to purchase your entire company on 14 April.

Nonetheless, in May, Mr Musk began raising questions on the variety of bot accounts on the platform – despite having stated within the April press release that he was purchasing Twitter with a purpose to take care of the spambots.

Twitter filed to sue Mr Musk last week, arguing that the tech billionaire is legally sure to perform his $44bn acquisition of the social network.

Twitter argued that leaving the deal now can be “invalid and wrongful”, and said that Mr Musk “apparently believes that he – unlike every other party subject to Delaware contract law – is free to alter his mind, trash the corporate, disrupt its operations, destroy stockholder value, and walk away”.

Mr Musk has claimed that his reason for walking away from the deal is that Twitter didn’t give him details about fake accounts and spambots on the platform.

“Twitter has failed or refused to supply this information. Sometimes Twitter has ignored Mr Musk’s requests, sometimes it has rejected them for reasons that look like unjustified, and sometimes it has claimed to comply while giving Mr Musk incomplete or unusable information,” Mr Musk’s attorney said in a letter to the Twitter board.

Twitter subsequently filed with the Delaware Chancery Court. Mr Musk replied to the news via a tweet: “Oh the irony lol”.

It’s unclear who will come out victorious on this case, but when Mr Musk loses it seems unlikely that he’ll have the opportunity simply to walk away from the deal without paying a penalty.

Should Mr Musk refuse to purchase Twitter despite being ordered to by a judge, he could possibly be held “in contempt and set a day by day high quality until he complies”, Brian Quinn, a Boston College law professor who teaches in regards to the law referring to mergers and acquisitions, told Bloomberg. “For Musk, that will must be a fairly large number.”

Tesla, which is owned by Mr Musk, can also be a Delaware corporation, which might give the court the ability to go after Mr Musk’s stock options. Nonetheless, such a scenario is unprecedented.

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