Jury to Decide if Musk Tanked Twitter Share Price

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A civil trial in San Francisco will determine whether Elon Musk engaged in deceptive practices that tanked Twitter's share price before he completed his $44 billion acquisition of the social media platform, which he later renamed X. The trial focuses on statements Musk made in May 2022 questioning Twitter's reporting on bot and spam accounts, which caused the company's stock to drop nearly 18% in the following days.

Why it matters

This case could have major implications for how billionaires and other powerful figures can influence public companies and their shareholders, especially during high-profile takeover attempts. The outcome could set precedents around disclosure requirements and market manipulation.

The details

Musk signed a binding agreement in April 2022 to purchase Twitter at $54.20 per share. But in May, he began publicly questioning Twitter's reporting on the number of bot and spam accounts on the platform, saying he was 'flabbergasted' that the company's leadership couldn't provide more details. This led Musk to tweet that the deal was 'temporarily on hold,' causing Twitter's stock to plummet. He later said he was still committed to the acquisition, but the damage was done as many investors sold their shares at deflated prices.

• In April 2022, Musk signed a binding agreement to purchase Twitter for $54.20 per share.
• In May 2022, Musk began publicly questioning Twitter's reporting on bot and spam accounts.
• On May 13, 2022, Musk tweeted that the Twitter deal was 'temporarily on hold'.
• Hours later on May 13, 2022, Musk tweeted that he was 'still committed to the acquisition'.
• On May 16, 2022, Musk tweeted that up to 20% of Twitter users could be bots.

What they’re saying

What’s next

The jury in the civil trial in San Francisco will decide whether Musk's statements about Twitter's bot and spam accounts amounted to market manipulation that unfairly impacted the company's shareholders.