The coming Musk vs. Twitter match is set to spark major friction within team Twitter’s camp, whether or not Musk’s team wins its legal battle to cancel his $44 billion takeover bid. Just after roping in former Product Chief Kayvon Beykpour, Musk’s team looks to add more flavor to their argument by filing a Subpoena for former Tweet CEO – Jack Dorsey, who also turns out to be a vocal supporter of Musk.

Backtrack Attack

If you take a look at this Tweet, that one line where it says ‘light of consciousness’, simply refers to Musk’s previous statements about his personal ambition, which is so horrendous that it’s amazing to hear of anyone seriously being able to use it with a straight face.

But consciousness and consideration aside, the fact that Dorsey and Beykpour will be called before the court to discuss their knowledge, or not, about Twitter’s operations, could become a tipping point, maybe not for the legal case itself, but in terms of the rift, it could cause within Twitter’s own makeup and structure. Dorsey, in particular, is now set to be put up in the middle of his former and a friend whom he deeply respects.

So, what would that mean for team Musk? Will that improve Musk’s chances of exiting from the deal? Well, it depends on how you see it – Elon and Co. are currently pushing the argument that the amount of fake/spam accounts on Twitter is way more than 5%. By their estimates, it’s more like 27%, while they also claim that only 7% of Twitter users are actually seeing the majority of ads on the platform. Understandably, that would impact future revenue estimates because if only a fraction of Twitter’s ads are being viewed by real people, then that dilutes revenue per user potential, which team Musk says will render any future earnings estimates practically useless.

Twitter responded by providing its estimation methodology, but more importantly, Twitter says that this isn’t even all that relevant, at least not within the scope of the takeover agreement. The Material Adverse Effect regulation relates to any significant changes in market position that have occurred since the deal was agreed to. In Twitter’s eyes, no such change happened, but Musk’s team insists that its findings since the agreement constitute the Material Adverse Effect.

It would seem that this decision now lies with the court. It’ll be interesting what other insights Dorsey and Beykpour will bring to this trial, and whether or not these extra thoughts will change perspectives.

The Wrap 

With every Twitter news about this deal comes a fresh wave of hope that the long struggle will finally be over and that we’ll all finally have a new Tweet CEO, regardless of how they feel about the position. While some experts believe that Musk is only after to lower the initial cost of his bid, his persistence in posting about account authentication and verification also says something about his adamant stand against Twitter’s fake account claims. Though it may be slow progress, it’s still progress, which may also reflect that Twitter’s dev team is already shifting to Elon mode, in preparation for the next stage.

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Sources 

https://bit.ly/3PKuMtx