Contents
Tesla CEO Elon Musk Gets 44 Billion For Twitter
The Twitter board has recommended that Elon Musk buy the social network. This was not a surprise, as the company’s board had endorsed the acquisition before it was even announced. The deal is not without its uncertainties, however. Musk threatened to pull out of the deal if it wasn’t revealed that less than 5% of accounts on Twitter were bots. He also accused Twitter of actively resisting his requests for information about bots. However, the company has now agreed to provide the data to the public.
Elon Musk
The stock of Twitter has dropped in recent days as Musk sought to buy the company. The billionaire has said that the purchase of the company would be one of the largest leveraged buyouts ever. But Twitter’s lack of transparency and failure to provide more information on fake and spam accounts is hindering the deal. Read also : Why Does My Twitter Keep Logging Me Out?. Elon Musk also filed a lawsuit against Twitter to get the deal annulled. Twitter has denied the allegations and said it is not willing to lower its price.
But if the deal goes through, Twitter’s stock will likely trade in the $25-$30 range once it reopens on Monday. The $1 billion breakup fee Musk paid Twitter in the deal could lead the company to sue Musk for breach of contract. The battle could last months. Twitter is already struggling under leadership changes, a falling share price, and low morale. If the deal fails, Musk will be forced to pay a breakup fee.
Twitter shareholders
Elon Musk is a billionaire and the latest person to make a splash on the internet with an investment. The CEO and founder of Tesla Motors has agreed to buy Twitter for $44 billion. The deal will take the company private. On the same subject : What Happens After 30 Days of Deactivating Twitter?. Elon Musk will be the largest shareholder and take over as the CEO. He previously rejected the offer from Twitter shareholders to become a board member and even purchase the company. However, he has since changed his mind.
Musk’s deal with Twitter could be controversial. The deal is subject to shareholder approval, and a debt resolution. In the meantime, Twitter has locked down its product changes. Musk has said he would consider renegotiating the terms, but has not ruled it out. Twitter hasn’t said whether it plans to sell itself or remain publicly traded. Musk has previously indicated that he would be willing to negotiate with Twitter shareholders.
Elon Musk’s legal team
After a bitter fallout from the Tesla and Twitter deal, Twitter has filed a lawsuit against Elon Musk for not fulfilling his purchase promise. The lawsuit will be filed in Delaware’s Court of Chancery and is likely to be a long-drawn legal battle. On the same subject : How Is Elon Musk Buying Twitter?. According to the lawsuit, Twitter failed to provide full information on fake accounts and breached the acquisition agreement. If Twitter loses the lawsuit, it will be forced to pay a $1 billion breakup fee to Twitter, which would be a loss of $44 billion.
As part of its defense strategy, Twitter has hired a legal team that has experience defending companies against hostile takeovers. For instance, Twitter has hired William Savitt, a partner at the highly respected law firm Wachtell Lipton. Savitt has extensive experience before Delaware’s Chancery Court. In the past, he defended against Pershing Square, a hedge fund run by billionaire investor William Ackman. Unlike other corporate raiders, Musk has not yet backed off the Twitter acquisition, but his legal team is working to make the case.
Twitter’s stock price after Musk’s withdrawal from the deal
The Tesla CEO had offered to buy 14.9% of Twitter and a board seat for himself. Musk’s withdrawal from the deal has triggered a steep drop in the stock price. The company has been unable to convince Musk to sign the takeover agreement, which means the deal could be repriced in the future. Musk’s tweets about Twitter’s board could lead to a legal battle if he refuses to budge.
While it is difficult to judge the legality of Musk’s decision to walk away from the deal, legal experts say it will be difficult for him to do so. Twitter may have to pay a $1 billion breakup fee if Musk decides to pull out on his own, and that would leave him on the hook for the rest of the deal’s costs. However, the company is confident that it will prevail in court and believes it can win.
