The Clap Elon Musk wants to pull out of the $44 billion takeover of Twitter, but it might get ugly first.
Why? According to Musk’s lawyer, Twitter “failed or refused” to provide the exact number of fake accounts on its platform. However, many believe Musk realized his bid was too high & is looking to make a u-turn.
Twitter’s Side For starters, shares of Twitter were down almost 8% in pre-market trading this morning. Twitter’s chairman quickly responded to the news tweeting that the company “plans to pursue legal action to enforce the merger agreement.” The court that’s set to host this legal dispute is notorious for handling incomplete merger deals.
Musk’s Side Whatever Musk is looking to achieve, be it negotiate a lower price tag or actually pull out, experts think he’s not likely to get what he wants. That’s because Musk’s evidence for fake accounts might be too weak. On the bright side, shares of Tesla jumped on the news.
Why this Matters Musk now has more to worry about than the already-expensive $1 billion breakup fee. But while Twitter may appear to have the upper hand going into court with Musk, the billionaire could try to make it enough of a hassle that the two reach a settlement for a lower price tag. One thing is for sure, the Musk-Twitter saga is far from over.