Over the past few months, the process of Elon Musk buying Twitter has been a constant back and forth. At some points, it looked like the deal was for sure going to go through, while at other points, not so much. As of July 11th, 2022, however, it appears the deal is off. At least, according to Elon Musk, who had his lawyers notify Twitter through a letter that the deal would be called off. Musk explained the platform’s concentration of bots and fake accounts was much higher than they’d claimed. This reasoning was initially used to negotiate the price of the purchase down. Today, however, it appears to be used to justify the deal’s cancellation.
Twitter isn’t just sitting back and taking the move from Musk. Rather, they are gearing up for their own legal move, planning to sue Musk over his cancellation of the deal and hold him to the deal to purchase Twitter at $54.20 a share. Indeed, Twitter Chairman Bret Taylor wrote “The Twitter Board is committed to closing the transaction on the price and terms agreed upon with Mr. Musk and plans to pursue legal action to enforce the merger agreement” and that “We are confident we will prevail in the Delaware Court of Chancery.”
What do you think about Musk’s cancellation of the deal and who will prevail in court?
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.