Recently, a billionaire and CEO of Tesla announced that he is going to end his Twitter deal. However, the deal was tumultuous after a number of agreements between Musk and the firm were not solved.
Additionally, Twitter’s share price stood at about $34.40 in early Monday trading – falling further below the $54.20-a-share takeover price agreed by Mr. Musk and Twitter’s board in April. Investors had not yet reacted to Elon Musk’s action on his announcement of exiting the deal.
Subsequently, Twitter shares fell today Monday 11th July 2022. However, Mr. Musk cited the lack of enough information on Twitter accounts especially the bot and the number of fake Twitter accounts as the reason he backed out. Mr. Musk announce that he was going to purchase Twitter but the deal was put on hold for a while. No enough information was given on a number of fake accounts.
Twitter to take legal action
Nonetheless, Twitter later said that it was planning to take legal action against Elon Musk. The firm hired New York’s Wachtell Lipton Rosen & Katz, which is one of the world’s leading corporate law firms. However, John Coffee, a Colombia Law School professor and a former adviser to the New York Stock Exchange and Nasdaq, told a national media broadcaster that Mr. Musk didn’t have a “great legal argument”.
“It’ll be a big battle, but I would predict it’ll be quietly settled,” he said. “I think Mr. Musk doesn’t expect to come out with a victory. I expect that he’s hoping that he can knock another 10 or 20 billion off the price he agreed to pay.”
Also read Elon Musk To End His Twitter Deal
Nonetheless, Twitter wants Musk to honor his deal. The merger agreement includes a $1bn (£830m) break-up fee. However, instead of pushing for Mr. Musk to pay the sum, Twitter wants the businessman to compete in the deal. “The Twitter board is committed to closing the transaction on the price and terms agreed upon with Mr. Musk,” its chairman Bret Taylor wrote in a tweet.