- Twitter wants to force Elon Musk to take power by the court.
- The chances of this process being successful are uncertain.
- Musk made fun of the move.
Social media platform Twitter plans to file a lawsuit against Telsa CEO Elon Musk later this week after it announced on Friday that it did not want to take over the social media giant after all.
Bloomberg announced on Sunday that the firm has hired the law firm Wachtell, Lipton, Rosen & Katz and will take a lawsuit in Delaware. This applies to corporate law in the US state of Delaware and is not a jury.
However, it is unclear how a potential dispute could ultimately play out.
Last week, Twitter CEO Bret Taylor announced that he would take legal action against Musk for wanting to withdraw from the business. He said management was “determined to complete the transaction as agreed” and planned to take legal action “to enforce the acquisition agreement.”
However, some believe that Musk’s move is simply to renegotiate terms because the deal is too expensive for him.
Accelerate Financial founder and CEO Julian Klimitschko said on Friday on Twitter that “the most likely outcome is an out-of-court settlement that will be renegotiated.”
It might take a while to play and probably be quite fun, but I believe a negotiated deal will be the most likely outcome
If not discounted price> $ 45.00 then Negotiated Break Fee which is> $ 3 Billion out of Elon’s pocket
12 / https: //t.co/59b4uLTOPH
– Julian Klymochko.eth (@JulianKlymochko) July 9, 2022
Angelo Zino, an analyst at CFRA Research, made a similar forecast on Sunday. It believes there is “no way” the deal will close as previously agreed at $ 54.20 per share.
“Either the bid price will be cut by 15 to 20 percent so that Elon Musk agrees to a reacquisition, or he will continue playing with the bot card,” said Zino.
The billionaire agreed on April 25 to buy Twitter for $ 54.20 a share. But the platform’s share price has since dropped 32.1 percent to $ 36.81 per share.
Musk may go bankrupt very well, but he would have to pay Twitter a $ 1 billion exit fee, the SEC filing said on April 25.
Crypto Twitter responds
The fact that Musk does not want to take over Twitter after all has been negatively received, especially by the platform’s crypto community. This definitely supported his plans to remove spam accounts and scam bots from the platform.
I’m glad Musk isn’t going to Twitter, but that means we have to face an even uglier problem: the people who currently Twitter.
– Matthew Green (@matthew_d_green) July 9, 2022
A poll by the OKX crypto trading platform on Friday found 38.8 percent of respondents believed that withdrawing Musk’s offer due to the spread of spam bots would be bad for Twitter’s crypto. However, the majority, 40.4%, said they did not care.
– OKX (@okx) July 8, 2022
Others hoped Musk would use the money to “save the crypto industry” that is currently going through crypto.
Since @elonmusk has terminated a $ 44 billion Twitter deal, maybe it could save the crypto industry instead
– WendyO.ethâœ¨ (@CryptoWendyO) July 8, 2022
Elon Musk’s decision not to pursue a $ 44 billion contract with Twitter was announced Friday in a letter to Twitter’s board of directors.
Against this background: Tesla boss Elon Musk smashes a $ 44 billion deal with Twitter
The letter stated that Musk would now dismiss the acquisition because Twitter “has apparently provided false and misleading information.” It claims that Twitter has not made it clear enough how the platform checks spam and fake accounts, and identifies and blocks such accounts.
Musk made fun of the news on Monday by sharing a meme about himself, suggesting the lawsuit would force Twitter to reveal data on bot activity.
– Elon Musk (@elonmusk) July 11, 2022
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