Chapter 154

Musk seeks financial advice on how to lower or escape the Twitter deal, initially enlisting Bob Swan, who quits after Musk dismisses his analysis. Musk then brings in Antonio Gracias and investment banker Robert Steel to explore options. As Twitter sues him in Delaware for breach, Musk's legal team struggles to control his tweeting, which undermines his case. Meanwhile, Ari Emanuel attempts to broker negotiations and later offers to run Twitter for a fee, both efforts ultimately rejected.

In June 2022, uncertain about the $44 billion Twitter acquisition, Musk asks for financial modeling of three scenarios: proceeding as agreed, repricing, or exiting entirely. He hires Bob Swan, a former eBay and Intel CEO, but fires him after Swan endorses the original deal. Musk then calls Antonio Gracias, an early Tesla investor, who assembles a team including investment banker Robert Steel. Steel determines Musk wants a lower price, not a full exit, though Musk harbors private doubts about the acquisition.

When Musk demands Twitter's user data and finds it unusable, his lawyers cite this as grounds to invoke termination rights. Twitter sues in Delaware's Chancery Court, with trial set for October. Musk's legal team—Alex Spiro and Mike Ringler—struggle to stop him from tweeting statements that harm his legal position, including a joke about buying Manchester United that triggers SEC concerns.

At Ari Emanuel's wedding in Saint-Tropez in May 2022, comedian Larry David confronts Musk about voting Republican, while Musk also argues with board member Egon Durban. Emanuel, a deal-maker, proposes back-channel negotiations. Musk suggests roughly half the original price ($22 billion), which the board dismisses. Informal settlement talks begin after Emanuel's July invitation to Mykonos, but Twitter demands board protections from future lawsuits, which Musk refuses.

By late September, after reviewing whistleblower evidence of bot misstatements, Musk oscillates between fighting the case and accepting the original terms. His lawyers convince him he will lose at trial. He decides to close at $54.20 per share, $44 billion total, even recovering enthusiasm for the company's potential. Once the deal is confirmed for October closing, Emanuel sends an encrypted proposal offering to run Twitter operationally for $100 million, handling cost-cutting and advertiser relations. Musk rejects it, reaffirming his belief that Twitter must be engineering-led and that he will run it himself.