Twitter lawyers up to force through Musk deal. Will it work?
Social media platform Twitter is reportedly looking to file a lawsuit as early as this week against Telsa CEO Elon Musk after he announced his intention to pull out of the $44 billion deal to acquire the social media giant on July 8.
Bloomberg reported on July 10 that the company has hired corporate law firm Wachtell, Lipton, Rosen & Katz and will bring the case to the Delaware Court of Chancery, a non-jury trial court that deals with corporate law in the state of Delaware.
However, it’s unclear whether the potential lawsuit will eventually end up with Musk purchasing the platform, either at the previously agreed price, at a re-negotiated price, or not at all.
Last week, Twitter chairman Bret Taylor pledged to pursue legal action against Musk for trying to pull out of the deal, stating the board is “committed to closing the transaction” as previously agreed and planned to pursue legal action “to enforce the merger agreement.”
However, some believe that Musk’s move to terminate the deal could just be another tactic to renegotiate the terms of the pricey agreement.
Accelerate Financial founder and CEO Julian Klymochko told his 24,200 Twitter followers on July 8 that a negotiated settlement will be the “most likely outcome.”
It may take a while to play out, and will likely be quite entertaining, but I believe a negotiated settlement will be the most likely outcomeIf not a reduced price of >$45.00, then a negotiated break fee that is >$3 billion out of Elon's pocket12/https://t.co/59b4uLTOpH
Angelo Zino, an analyst at CFRA Research made a similar prediction to non-profit media organization NPR on July 10 that there would be “no chance” for the deal to be put through at $54.20 per share as previously agreed.
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