Elon Musk associates named in Twitter subpoena

COMMENTARY

SAN FRANCISCO — Twitter is investigating Elon Musk’s associates and other informants in a series of wide-ranging legal claims related to the billionaire’s $44 billion deal to buy the social media company, according to legal documents obtained by The Washington Post.

In a Twitter subpoena issued Monday, the social media company’s legal team sought information about a who’s who of Silicon Valley’s elite, including investors Chamath Palihapitiya, David Sacks, Steve Jurvetson, Marc Andreessen, Jason Calacanis and Keith Rabois, among others. . Some of the figures have not previously been mentioned as having any involvement in the deal, suggesting the breadth of Twitter’s search for information to support its case in an effort to force Musk to make his deal to buy the company.

Twitter declined to comment. Palihapitiya, Sacks, Calacanis, Jurvetson and Rabois did not immediately respond to requests for comment. Musk and two of his lawyers did not immediately respond to a request for comment.

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A flood of requests for documents released over the weekend and Monday marks the latest twist in the contentious and fast-moving court case between the social media service and Musk, who is trying to back out of his bid to take over the company.

After Musk said he was pulling out of the deal last month — accusing Twitter of not being forthcoming about the amount of spam and bots on its service — Twitter sued Musk in a Delaware business court, known as the Court of the Chancellery. Musk, for his part, hit back on Twitter on Friday. Twitter also issued subpoenas over the weekend to a group of banks involved in the deal, including Credit Suisse and Morgan Stanley.

The subpoena obtained by The Post includes extensive requests for communications, including “checklists, timelines, presentations, decks, organizational calls, meetings, notes, recordings” related to the deal’s financing. Twitter lists individuals who were previously not mentioned as involved.

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Calacanis and Andreesen were previously known to be involved in the financing aspects of the deal.

The Monday subpoena obtained by The Post also specifically asks for any communications about spam and bots, as well as information about the 2022 All-In Summit, an event in Miami held in May by Palihapitiya, Calacanis, Sacks & David Friedberg. The men host a popular podcast together, and the summit was a live podcast-related event. Musk spoke at the event via video conference.

At the event, Musk telegraphed his concern about the deal, saying “the more questions I ask, the more my concerns grow.”

Musk had tweeted days earlier that the deal was “on hold” due to concerns about the percentage of spam or fake accounts on the site. He said at the conference that he could ask for a lower price for the social media site and accused Twitter of misleading him about the percentage of fake accounts on the platform, likening the issue to buying a house with a termite problem.

Calacanis and Sacks are known to be friends with Musk. Sacks worked with Musk when the men ran PayPal, along with billionaire Peter Thiel, who is a friend of both men. Rabois was also a PayPal executive and a friend of Thiel’s. Jurvetson is a longtime friend of Musk’s who is on the board of Musk’s SpaceX and has served on the board of electric car company Tesla, which Musk leads as CEO.

A call also went out to investor Joe Lonsdale, an associate of Musk and Thiel who also spoke at the All-In event, according to a I tweet from Lonsdale on Monday. Lonsdale declined to comment beyond his tweet.

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In the tweet, Lonsdale described the call as a “giant bullying fishing expedition” and he said he had “nothing to do with it other than some weird comments”.

Lonsdale, Rabois, Sacks and Thiel are also known to lean politically right and operate in a conservative political orbit that Musk has become increasingly involved in, previously reported by The Post.

Calacanis launched a pool known as a special purpose vehicle to raise money for the deal this spring, using a vehicle that brings smaller investors into a larger offering. It aimed to attract investors at a minimum of $250,000. Investors were told to show their interest no later than May 11. Calacanis hosted Musk at the All-In Summit a few days later.

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