Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Elon Musk's trove of private text messages is a bad look for him — and another win for Twitter, experts say

Elon Musk's trove of private text messages is a bad look for him — and another win for Twitter, experts say

Hundreds of texts between Elon Musk and big names in media and finance were released on Thursday as a part of the discovery process for Twitter's lawsuit.
A trove of private text messages released Thursday between Elon Musk and big names in media and finance could pose a problem for the billionaire as he heads into a court battle with Twitter, several industry watchers told Insider.

"It's not a good look and likely puts Musk in a weaker legal stance," Wedbush Securities tech analyst Dan Ives said. "This adds more agita to the Musk camp."

The billionaire is set to square off with Twitter in a five-day trial beginning on October 17. The social media company is attempting to force Musk to follow through on his $44 billion purchase offer after he announced plans to back out in July.

The hundreds of texts between Musk and some of Silicon Valley's most powerful players offer fresh insight into Musk's plans for Twitter. The texts also highlight several of Twitter's primary arguments against Musk — pointing to a "weakness" in the billionaire's case, said Matthew Schettenhelm, senior litigation analyst for Bloomberg Intelligence.

Up until recently, Musk's legal team has centered its argument on claims the company intentionally misled Musk and investors as to the number of active users on the platform.

But Musk's private texts appear to tell a story that is "in tension with his lead argument," Schettenhelm told Insider. In a message to Twitter Chairman Bret Taylor on April 9 — the day Musk told the board of his plans to buy Twitter — the billionaire said it would be "hard" to fix the social company and address issues with scam accounts without taking it private.

"Purging fake users will make the numbers look terrible, so restructuring should be done as a private company," he texted Taylor, according to the cache of documents released Thursday.

Erik Gordon, a professor at the University of Michigan's Ross Business School, said Musk "won't win in court with a claim that he was misled by the number of fake users."

Twitter has also argued that Musk might steal its internal data and create a competing company. The billionaire's private texts seem to indicate he was indeed bouncing around plans for creating another social media platform at the same time he was shoring up investors to buy Twitter. In texts to his brother Kimbal from April, Musk shared his idea for a blockchain-based social media platform.

Ann Lipton, a business law professor at Tulane University Law School, said Musk's text about developing a competing platform could also play into Twitter's hands.

"To the extent Musk is armed with confidential internal Twitter data that he could use to harm the company in the future – perhaps by establishing a competitor – that might weigh in favor of granting Twitter specific performance" and forcing him to follow through on the deal, Lipton said.

While the texts show that at one point Musk appeared to be serious about buying Twitter, the messages also show the billionaire was slow to communicate his plans with Taylor and Twitter CEO Parag Agrawal.

Jasmine Enberg, an analyst at research firm Insider Intelligence, said the texts seem to illustrate Musk realized that "transforming Twitter was a bigger undertaking than he initially thought." Insider Intelligence is part of Insider, Inc., Insider's parent company.

Still, Gerard Filitti, senior counsel at The Lawfare Project, an international non-profit legal think tank and litigation fund based in New York City, said it's difficult to understand the true sway of the texts without relevant depositions to fill in the gaps.

"It does not appear that any of them alone is explosive in content," Filitti said. "As with all evidence these messages will be used to tell a story and they will be shaped to whichever side is telling that story."
AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
Hungary Ranked Among the World’s Safest Travel Destinations for 2025
G7 Leaders Fail to Reach Consensus on Key Global Issues
FBI and Senate Investigate Allegations of Chinese Plot to Influence the 2020 Election in Biden’s Favor Using Fake U.S. Driver’s Licenses
Trump Demands Iran's Unconditional Surrender Amid Escalating Conflict
Shock Within Iran’s Leadership: Khamenei’s Failed Plan to Launch 1,000 Missiles Against Israel
Wreck of $17 Billion San José Galleon Identified Off Colombia After 300 Years
Man Convicted of Fraud After Booking Over 120 Free Flights Posing as Flight Attendant
Iran Launches Extensive Missile Attack on Israel Following Israeli Strikes on Nuclear Sites
Beata Thunberg Rebrands as Beata Ernman Amidst Sister's Activism Controversy
Hungarian Parliament Approves Citizenship Suspension Law
Prime Minister Orbán Criticizes EU's Ukraine Accession Plans
Hungarian Delicacies Introduced to Japanese Market
Hungary's Industrial Output Rises Amid Battery Sector Slump
President Sulyok Celebrates 15 Years of Hungarian Unity Efforts
Hungary's Szeleczki Shines at World Judo Championships
Visegrád Construction Trends Diverge as Hungary Lags
Hungary Hosts National Quantum Technology Workshop
Hungarian Animation Featured at Annecy Festival
Israel Issues Ultimatum to Iran Over Potential Retaliation and Nuclear Facilities
UK and EU Reach New Economic Agreement
Coinbase CEO Warns Bitcoin Could Supplant US Dollar Amid Mounting National Debt
Trump to Iran: Make a Deal — Sign or Die
Operation "Like a Lion": Israel Strikes Iran in Unprecedented Offensive
Israel Launches 'Operation Rising Lion' Targeting Iranian Nuclear and Military Sites
UK and EU Reach Agreement on Gibraltar's Schengen Integration
Israeli Finance Minister Imposes Banking Penalties on Palestinians
U.S. Inflation Rises to 2.4% in May Amid Trade Tensions
Trump's Policies Prompt Decline in Chinese Student Enrollment in U.S.
Global Oceans Near Record Temperatures as CO₂ Levels Climb
Trump Announces U.S.-China Trade Deal Covering Rare Earths
Smuggled U.S. Fuel Funds Mexican Cartels Amid Crackdown
Austrian School Shooting Leaves Nine Dead in Graz
Bezos's Lavish Venice Wedding Sparks Local Protests
Europe Prepares for Historic Lunar Rover Landing
Italian Parents Seek Therapy Amid Lengthy School Holidays
British Fishing Vessel Seized by France Fined €30,000
Dutch Government Collapses Amid Migration Policy Dispute
UK Commits to 3.5% GDP Defence Spending Under NATO Pressure
Germany Moves to Expedite Migrant Deportations
US Urges UK to Raise Defence Spending to 5% of GDP
Israeli Forces Intercept Gaza-Bound Aid Vessel Carrying Greta Thunberg
IMF Warns of Severe Global Trade War Impacts on Emerging Markets
Low Turnout Jeopardizes Italy's Citizenship Reform Referendum
Transatlantic Interest Rate Divergence Widens as Trump Pressures Powell
EU Lawmaker Calls for Broader Exemptions in Supply Chain Legislation
France's Defense Spending Plans Threatened by High National Debt
European Small-Cap Stocks Outperform U.S. Rivals Amid Growth Revival
Switzerland Proposes $26 Billion Capital Increase for UBS
×