It’s unclear whether the potential lawsuit can eventually see Musk purchasing the platform at the previously agreed value, at a brand new value, or not at all.
Social media platform Twitter is reportedly looking to file a lawsuit as early as in the week against Telsa CEO Elon Musk when he proclaimed his intention to drag out of the $44 billion deal to amass the social media big on July eight.
Bloomberg reported on July ten that the company} has employed corporate business 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 or not the potential causa can eventually find yourself with Musk getting the platform, either at the antecedently in agreement value, at a re-negotiated value, or not at all.
Last week, Twitter chairman Bret Taylor pledged to pursue proceeding against Musk for attempting to drag 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 may simply be another maneuver to renegotiate the terms of the pricey agreement.
Accelerate money founder and CEO solon Klymochko told his 24,200 Twitter followers on July eight that a negotiated settlement are the “most seemingly outcome.”
Angelo Zino, an analyst at CFRA analysis created the same prediction to non-profit media organization NPR on July ten that there would be “no chance” for the deal to be place through at $54.20 per share as previously united.
"You're either going to see a fifteen 20% come by the selling price to induce Elon Musk engaged once more, or he continues to play the bot card,” he said.
The have affected the deal to shop for Twitter for $54.20 per share on April 25, however the platform’s share worth has fallen 32.1% since then, down to $36.81 per share at the time of writing.
Musk also has an avenue to drag out of the deal however are going to be ill-treated with a $1 billion “termination fee” payable to Twitter, consistent with the initial Securities and Exchange Commission filing submitted on April 25.
Crypto Twitter weighs in
Musk’s call to step far from owning Twitter has mainly been seen as a negative by the platform’s crypto community, who supported his plans to remove all spam and scam bot accounts from the micro-blogging platform.
A poll from crypto trading platform OKX on July eight found that thirty eight.8% of respondents said Musk terminating his bid would be bad for Crypto Twitter due to the proliferation of spam bots. However, the majority, 40.4%, said they didn’t care.
Others have pledged their hopes that Musk may use the funds to instead “bail out the crypto trade instead” amid the long-running crypto winter.
Elon Musk’s intention to finish the $44 billion Twitter deal was sent as a letter to the Twitter board on Friday.
( Felix NG, Cointelegraph, 2022 )