The developments regarding Elon Musk’s acquisition of Twitter are incessant. The famous billionaire, who gave up the purchase on the grounds that he could not get the necessary answers to his questions about spam and fake accounts, is taking a step back this time. According to the information that has emerged, Musk wants to buy the company at the agreed price instead of going to court. So why does the CEO of Tesla and SpaceX, who have dozens of lawyers under his command, avoid facing the law? Here are the details…
Why is Elon Musk avoiding court?
Robert Miller, head of Corporate Finance and Law at Lowa University Law School, says Musk’s attempt to evade the deal he signed was a futile effort. According to Miller, the famous billionaire is trying to evade the contract by accusing Twitter of fraud. However, there is no legal proof that this tactic will work.
The CEO of Tesla and SpaceX may have decided to withdraw from the lawsuit, as he may suffer personal damage. With little chance of winning, persistence in court will do more damage to the company. This decision also damaged Musk’s relationship with co-investors. Thus, he will have acquired a company that has worsened over the course of the lawsuit. Moreover, it is said that it faces the risk of doing this with less equity support.
The first of Elon Musk’s challenges as the owner of Twitter is to fix the damage he has done to the social platform in the legal process. Many employees of the company, including senior names, left the job. “Musk has worked to destroy the value and reputation of Twitter, and we have concerns about what Twitter looks like in his reign,” Twitter shareholders say.
Twitter decision from Elon Musk!
Elon Musk announced that he gave up the deal to buy Twitter. Months later, he says he is now planning to buy it again. It is said that he did not change the price of $54.2 per share by re-bidding to the social media company he was the defendant. Lawyers were not surprised by the famous billionaire’s pushback. The shares of Twitter, which fell after Musk gave up, gained 18 percent with the news in question.
Why did Elon Musk suspend his decision to buy Twitter?
Elon Musk offered Twitter $54.2 per share in his notice to the US Securities and Exchange Commission (SEC) on April 14. Twitter announced on April 25 that an agreement was reached to sell the company to Elon Musk. Then, on May 13, Musk announced that he was temporarily suspending the deal to buy Twitter. As the reason for the suspension of the agreement, it was explained that “detailing information about the number of spam and fake accounts” was made.
Elon Musk announced on July 8 that he has terminated the agreement to acquire Twitter. In a statement to the SEC in response to the termination decision, Musk’s lawyers stated that Twitter did not respond to a request for information about fake accounts. Twitter sued Musk for this decision. The case was due on October 17.
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