Twitter To Pursue Legal Action Against Elon Musk After Backing Down From Deal
After Elon Musk’s letter to Twitter where he confirmed that he plans to back down from the platform’s purchase was public, there are more ramifications that need to be addressed.
In short, Twitter’s stock will be dramatically affected by this decision as it could go down from the $38 per-share that it currently has to between $25 and $30 per-share.
This is definitely a disaster scenario compared to the Musk offer that reached an impressife $54.20 per-share. Due to how much the Twitter stock has plunged in recent months as have all major companies, the clause that allowed Musk to back down from the buy is no longer viable for the platform.
If he decided to back down, Musk was supposed to pay $1 billion as a sanction and safely back down.
But the recent scenario for Twitter has made them pursue the deal with the tech mogul, meaning they will go all out to either make it happen or go to trial and fight it in court. One of Twitter’s board members, Bret Taylor tweeted the following on Friday: “The Twitter Board is committed to closing the transaction on the price and terms agreed upon with Mr. Musk.
“The board plans to pursue legal action to encore the merger agreement. We are confident we will prevail in the Delaware Court of Chancery,” he said. It seems that Musk is about to get himself into deep trouble out of a simple whim, many argue he probably deserves what’s coming to him.
The only way this won’t go all the way to court is if both side settle. However, the settling agreement has to be far more than just the $1 billion Musk would’ve paid if he backed down from the deal two months ago. Should they settle, Musk will have to pay far more than that in order to get the entire Twitter board off his case.
If they go to trial, there is even a chance that the judge will force Elon Musk into buying Twitter. Either that or the judge will force Musk to pay a hefty amount of money for all the trouble he caused. This might very well be the single worst decision Musk ever made in his entire career.