Elon Exposes Whistleblower
By now, you have heard about the beef between Elon Musk and Twitter. But a little refresher, Elon was planning to buy Twitter a couple of months back for $40 billion, until he backed out. This caused Twitter to file a lawsuit against Musk and he is also filing a countersuit. On August 29th, Musk’s lawyers filed a “Termination Letter” with the SEC which states that Peiter “Mudge” Zatko, the whistleblower, misled Elon’s party in the merger agreement. Specifically, Musk claims that Twitter knowingly and repeatedly lied about the security regulators of its platform. If these allegations are true, then that means that Twitter has violated the merger agreement and Elon Musk’s team would have the right to end the agreement. It seems that Musk desperately wants out. In this case, he would need to show the judge that Twitter violated the merger agreement in some aspect. If not, he would have to pay a billion-dollar fund or be forced to actually buy Twitter. However, we do not know if this accusation will significantly help Elon’s case. You see, back in the beginning of July, Elon filed a termination letter saying that Twitter misled SEC regulatory information. So, these are the same claims but with Zatko as basically another witness. In response to these statements, Twitter’s legal representatives described Musk’s case as “invalid and wrongful” and to Zatko, they described his allegations as inconsistent, inaccurate, and lacking important context. However, Twitter still has the end goal of getting Musk to go through with the agreement.
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.