Twitter to take Elon Musk to court for not buying it again
Elon Musk through a statements attributed to a lawyer representing the interests of the head of Tesla and SpaceX, say he is no more interested in acquiring Twitter assets. His reason dwells on lack of information he understands about the number of fake accounts in the audience of this social network.
In accordance to that, representatives of Twitter expressed their readiness to seek in court the right to complete the transaction on the conditions previously agreed.
Twitter Chairman Bret Taylor literally stated the following: “The Twitter Board has a commitment to seeing the deal through at the price and terms agreed with Elon Musk and plans to use legal means to close the deal”.
According to experts interviewed by Reuters, now it is likely that Musk and Twitter will get involved in lengthy litigation. Practice shows that such cases usually end either with an agreement; to conclude a deal on more favorable terms for the buyer; or with the payment of substantial compensation to them, covering the losses of the injured party.
By the way, the billion-dollar compensation is not applicable to the current situation, because if Elon Musk is ready to break the deal on his own initiative, he does not need to be paid. He would have to pay these funds to Twitter if he could not complete the deal for reasons beyond his control – for example, he could not collect the necessary amount or faced a fundamental disagreement of the regulators to approve the deal on the agreed terms.
People familiar with the matter expect the trial to begin in the coming weeks; with a verdict of justice within a few months. Independent lawyers are still believe that Twitter’s position in the future litigation looks stronger than Elon Musk’s. The company did everything possible to provide him with the necessary information about the structure of its user audience; and the fact that the quality of this data did not suit the potential buyer is; by and large, only the problem of Musk himself.
Now the share price of Twitter is 36%; below the level that was at when discussing the deal ($54.20 per share). By April, the billionaire managed to buy a large stake in the company, preparing for the deal; but now it is not entirely clear what he will do with respect to these assets. Perhaps all the steps taken by Musk are aiming at reducing the capitalization of Twitter; in order to buy the company at a lower price from the original $44 billion.