WHAT YOU NEED TO KNOW:
- Elon Musk seemed to be teasing that his website “X.com” could become a Twitter rival.
- The Tesla CEO bought the domain name in 2017 from PayPal.
- Musk offered to buy Twitter for $44 billion but now faces a lawsuit in his attempts to get out of the deal.
Tesla CEO Elon Musk teased a possible Twitter competitor if he isn’t forced to go through with the $44 billion deal.
Musk responded to a question on Twitter as to whether he’d launch his own site by simply tweeting “X.com” on Tuesday. The comment came after it was revealed that the billionaire had sold 7.92 million Tesla shares worth $6.9 billion ahead of the very real chance he could be forced to purchase Twitter.
“In the (hopefully unlikely) event that Twitter forces this deal to close *and* some equity partners don’t come through, it is important to avoid an emergency sale of Tesla stock,” Musk said about the sale on Twitter.
It’s not the first time Musk has hinted at launching a direct competitor to Twitter. Ahead of his Twitter takeover offer, Musk told Twitter CEO Parag Agrawal he had considered creating his own platform.
Twitter listed the idea as a cause for concern in its lawsuit against Musk. Twitter believed he could be compiling internal data about the platform in an effort to replicate it.
At Tesla’s annual shareholder meeting last week, the CEO commented on the website which he bought back from PayPal in 2017.
“I do sort of have a grander vision for what I thought X Corporation could have been back in the day,” Musk said. “It’s a pretty grand vision and of course that could be started from scratch but I think Twitter would accelerate that by three to five years.”
X.com was initially an online bank that was co-founded by Musk in 1999. The company eventually merged with another payment system and became PayPal which eBay bought for $1.5 billion in 2002.
In 2017, Musk bought the domain name “X.com” from PayPal, saying the site had “great sentimental value” and relaunched the website.
Musk’s court battle with Twitter is set to begin in October. The social media company has said it plans to make the billionaire buy the platform at the original price of $44 billion.
The billionaire faces an uphill battle in his efforts to get out of the deal due to the contract he signed earlier this year.
Source: Business Insider