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TechCheck

Elon Musk and Twitter Face Off in Court, Previewing Netflix’s Earnings & New Reporting on the Bankruptcy of Celsius Network 7/19/22

TechCheck

CNBC

Technology, Business, Cnbc, Faang, Investing, Disruptors, Management, Tech

4.566 Ratings

🗓️ 19 July 2022

⏱️ 44 minutes

🧾️ Download transcript

Summary

Our anchors begin today’s show covering the latest in the Elon Musk-Twitter saga as their lawyers face off for the first time in court, with insight from Plexo Capital Founding Managing Partner Lo Toney and Verge Editor-in-Chief Nilay Patel. Then, Former Amazon Studios Head of Strategy Matthew Ball joins to preview Netflix’s earnings after the bell, and CNBC’s Kate Rooney shares new reporting on the bankruptcy of crypto lender Celsius Network. Later, we circle back to the legal battle between Musk and Twitter with insight from Former Delaware Court of Chancery Vice Chancellor Carolyn Berger. Hosted by Simplecast, an AdsWizz company. See https://pcm.adswizz.com for information about our collection and use of personal data for advertising.

Transcript

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0:00.0

I'm John Fort. You're listening to CNBC's Tech Check. Our show is live weekdays at 11 a.m. Eastern. Listen in.

0:08.3

Time will tell. Good Tuesday morning. Welcome to Tech Check. I'm Carl Kintania with John Fort and Julia Borsston. Dear Debosa has the morning off. A few moments ago, a hearing kicks off between Twitter and Elon Musk over the timeline of that trial. And Julia, that's where we're

0:23.2

going to begin this morning. Twitter and Elon Musk lawyers are right now facing off in virtual court

0:29.1

for the very first time as the two sides make their arguments about how soon the case should take

0:34.4

place before this is all happening before the chief Judge of the Delaware Chancery Court.

0:38.8

Now, Twitter is asking for a four-day proceeding in September, arguing that shareholders in its business have been left in limbo.

0:46.3

But Musk says he needs until February to investigate spam and fake accounts, saying trial prep will, quote, be extremely fact and expert intensive,

0:55.6

requiring substantial time for discovery.

0:58.2

Twitter shooting back to that in a filing late yesterday, writing, quote, the earliest possible

1:02.4

trial date is imperative, saying the very public dispute harms Twitter with each passing day

1:08.1

Musk is in breach.

1:10.0

The chancellor who is hearing this McCormick could announce her ruling as soon as today.

1:14.8

And the October 24th deadline for completing the deal, that will likely factor into her decision.

1:20.9

So, John, I guess the question here is, what can we read into the outcome of today's hearing for perhaps insight into what what we could expect

1:29.3

for the trial itself?

1:30.3

Well, it's a lot, right, Julia?

1:31.8

I mean, we were talking about this a little earlier today.

1:34.3

Elon Musk's entire argument here seems to hinge on this idea that he stumbled across a massive

1:40.6

fraud and how Twitter calculates spam accounts and he needs time to do due diligence

1:46.9

even though he waived the right to do due diligence so he's trying to like get in a time machine

1:52.5

and redo this have the court redo this deal and make it about spam accounts even though his entire

1:58.4

argument for buying Twitter was that only as a private company,

...

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