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, Muskโs lawyers filed a โTermination Letterโ with the SEC which states that Peiter โMudgeโ Zatko, the whistleblower, misled Elonโs 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 Muskโs 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 Elonโs 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, Twitterโs legal representatives described Muskโs case as โinvalid and wrongfulโ 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.