Here’s how Twitter will battle Elon Musk
Twitter collapses on the stock market, legal battle against Musk is announced. What's going on
Skip the wedding and Musk and Twitter "convolono" in court.
Twitter hired a large New York legal firm to battle Elon Musk after the American businessman renounced his social media purchase deal last week.
On Friday, Tesla and SpaceX boss Musk announced that he would cancel the deal, claiming he was unable to verify Twitter's estimates on fake accounts . His lawyer said this placed Twitter "in material violation of multiple provisions" of the original agreement. But the Twitter board doesn't fit. Twitter president Bret Taylor responded with a tweet stating that the company intended "to pursue legal action to enforce the merger agreement."
Since the announcement of the purchase of the media partner in April, there have been three months of hesitation on the part of Musk. The billionaire has accused Twitter of lying about the actual volume of activity of real users on its platform, which would be much lower than the level declared by the company. Twitter disputes Musk's objections, claiming to have passed him detailed information and removed about a million fake accounts from his platform every day.
And from this saga at the moment it is social media that comes out in bad shape.
Today Twitter is still losing ground on the stock market after the abandonment of the acquisition projects of Elon Musk. In the premarket, the stock of the American company fell 7.8% to $ 33.93 after losing 9% in post-closing trading last Friday. The price is far from the 54.20 dollars of the offer presented by Musk in April and among analysts there are already those who foresee a drop below 30 dollars per share.
Many analysts who have followed the story believe that the American billionaire's moves are an attempt to bring the price of Twitter below when he made his offer. According to some legal experts Elon Musk may have to complete the $ 44 billion Twitter acquisition, the Guardian reports.
All the details.
TWITTER HIRES LEGAL TEAM TO CAUSE ELON MUSK
Elon Musk's decision to try to terminate his Twitter purchase deal will cause a legal battle.
According to sources cited by the US press, Twitter will sue Musk in Delaware as early as this week.
According to sources cited by Bloomberg , the company hired the law firm Wachtell, Lipton, Rosen & Katz, with the aim of obtaining substantial damages from Musk.
MUSK DID BEHIND FRONT
Tesla CEO Elon Musk has withdrawn the $ 44 billion bid for the Twitter acquisition.
In Friday's letter, Musk put forward three general arguments: that Twitter had violated the agreement by not providing enough information on spam accounts; that Twitter misrepresented the number of spam accounts and that the company violated the agreement by not consulting with Musk when it recently fired senior employees.
WHAT WILL HAPPEN?
Under the terms of the agreement, the company can ask a judge for a "specific benefit," which would force Musk to buy the company for $ 54.20 a share. That is the price he agreed in April. Alternatively, the company can also ask Musk a $ 1 billion fee for terminating the contract in violation of the agreement.
With shares plummeting from Musk's original price and no clear internal plans to achieve that valuation, the company may also be looking for another buyer, Axios reports.
Finally, a third way could be to reach an out-of-court settlement between the two parties while the process is underway. The latter could include Musk buying Twitter at a discounted price.
THE OPINION OF LEGAL EXPERTS
Some legal experts lean in favor of Twitter.
According to John Coffee, a law professor at Columbia University, heard by the Guardian : "Musk has a very weak legal basis." "It seems Twitter has given him access to pretty much everything to satisfy his desire to know the percentage of bots among his users," he added. Carl Tobias, president of Williams at the University of Richmond, is also convinced that Musk's position is weak. "The documentation provided by Musk does not appear to give him a solid legal basis for abandoning the deal."
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/innovazione/ecco-come-twitter-dara-battaglia-a-elon-musk/ on Mon, 11 Jul 2022 14:21:54 +0000.