Explained: What's Next Up In Elon Musk's Colossal Conflict With Twitter

We saw a new twist in Elon Musk's month-long battle with Twitter as the Tesla billionaire appeared to go back to his initial April proposal to purchase the business for $44 billion.

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Though it hasn't yet ended. However, the two parties are still scheduled for a trial in Delaware on October 17 regarding Musk's earlier attempts to terminate the agreement, despite Twitter's claims that it plans to conclude the acquisition at the agreed-upon price.

Since no party has made a formal motion to halt the trial, the judge presiding over the case stated this week that she will "continue to press on toward our trial" as she issued an order requiring both parties to resolve their evidentiary disagreements.

Is the trial still in the process?

Although the head judge of the Delaware Chancery Court, Chancellor Kathaleen St. Jude McCormick, hasn't directly commented on Musk's new plan, she made it apparent in a decision on an unrelated evidentiary disagreement on Wednesday that nothing had changed for the court.

¡°The parties have not filed a stipulation to stay this action, nor has any party moved for a stay," she wrote. ¡°I, therefore, continue to press on toward our trial set to begin on October 17."

AFP

In a letter to the attorneys on Thursday, she emphasised that the "trial is fast approaching" and demanded that Musk's side respond to any unresolved evidence disagreements by Friday at noon.

Last week, Musk's attorney informed Twitter that the Tesla CEO will finalise the transaction provided that he secures the requested loan finance and that the Delaware court dismisses Twitter's case against him. But unless it can establish that the contract is actually for genuine this time and not just a ploy, Twitter is unlikely to give up on its legal actions.

What could happen next?

Lawyers for Twitter had been preparing to grill Musk in a deposition that was scheduled to start on Thursday, but it appears that it was postponed while Musk's revised takeover offer was still a possibility.

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After disputes between the two parties over its location and time, the interview was eventually planned to take place in Austin, Texas, not far from Tesla's corporate headquarters. With less than two weeks until the trial's start, Twitter lawyers complained to the judge about Musk's "long resistance" to the meeting and worries that he is "seeking to evade fair examination" as the key witness in the dispute. An earlier meeting was also postponed after Musk expressed concerns about a possible exposure to COVID-19.

Is Musk all set for Twitter takeover?

How quickly Musk and his co-investors can contribute $44 billion to complete the transaction he fought for months to get out of will determine, in part, if he is able to avoid a trial and take Twitter private.

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Musk has already been planning for the prospect that the court may rule in favour of Twitter and order the merger to go ahead, which legal experts believe is likely. With commitments of more than $7 billion from a group of investors, including Silicon Valley powerhouses like Oracle co-founder Larry Ellison, who committed $1 billion, he sold approximately and said he had increased his ownership.

According to text exchanges revealed last week in a court document, Ellison texted Musk in April and said, "I agree that it has huge potential... and it would be lots of fun." Ellison hasn't publicly commented on the renewed offer, though.

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