Remember when Twitter didn’t want to sell-out to Elon Musk? Employees were “devastated” and conservative censorship made a little bitty baby step towards waning.
However, it didn’t take long for the platform powers to realize Musk was their only route to salvation. They weren’t worth $40B, and they knew it. But what they didn’t know is that Musk wasn’t going to buy. And that’s what has every Twitter shareholder up in arms at the moment.
Of course, Kevin Jackson guessed it all along. But Jackson has a knack for predicting what’s next. Apparently, Twitter execs don’t have the same aptitude. Which is too bad, because it seems almost like common sense that the richest man in the world wouldn’t waste $40B to own a company that: 1. Can’t recoup his investment any time this decade; and 2. was hiding more secrets than a Russian spy.
So, Twitter entered the kind of meltdown mode one expects when a spoiled rich girl isn’t crowned prom queen after buying up half the votes. But Musk’s latest tweet shows just how scared he is right now!
Oh the irony lol
— Elon Musk (@elonmusk) July 12, 2022
Let the Games Begin!
Twitter is so upset that Musk called things off, they’ve initiated a lawsuit to force Musk’s hand.
According to CNN:
Twitter has sued billionaire Elon Musk in an effort to force him to follow through with his deal to buy the social media company.
The lawsuit, filed in the Delaware Court of Chancery on Tuesday, comes after Musk said in a letter to Twitter’s top lawyer late Friday that he wants to terminate the blockbuster $44 billion acquisition agreement.
Musk’s lawyer alleged in Friday’s letter that Twitter (TWTR) is “in material breach of multiple provisions” of the deal, claiming the company has withheld data Musk requested in order to evaluate the number of bots and spam accounts on the platform. Twitter (TWTR)’s legal team hit back in a letter on Monday, calling Musk’s attempted termination “invalid and wrongful,” claiming that Musk himself had violated the agreement and demanding that he follow through with the deal.
In the complaint filed Tuesday, Twitter’s lawyers say they are seeking to prevent Musk from further breaches of the agreement, and to “compel consummation of the merger upon satisfaction of the few outstanding conditions.”
“In April 2022, Elon Musk entered into a binding merger agreement with Twitter, promising to use his best efforts to get the deal done,” the complaint states. “Now, less than three months later, Musk refuses to honor his obligations to Twitter and its stockholders because the deal he signed no longer serves his personal interests.”
Here’s where the lawyers step in. No deal closes or collapses without the blood-sucking attorneys-at-law. But it shouldn’t be all that complicated.
Breaking Up is Hard to Do
From the start, a breakup fee of $1B was included in the deal. But, the way I was raised, if you are caught lying and stealing, you don’t get to keep the ring. Of course that won’t keep Twitter from trying.
The deal is now likely headed for a lengthy court battle to determine whether Twitter can force Musk to close the deal and become its owner, or at least get him to pay the $1 billion set out as a breakup fee in the original agreement.
After initially saying he wanted to buy Twitter to eradicate bots, Musk has in recent weeks expressed concerns (without any apparent evidence) that there are more bots on the platform than Twitter has publicly reported.
Some analysts, however, have suggested that Musk simply wants an excuse to get out of a deal that now seems overpriced following the downturn in Twitter shares and the overall tech market. Tesla shares, which Musk is relying on in part to finance the deal, have also declined sharply since he agreed to the acquisition deal.
Twitter said in its Tuesday complaint that, “having mounted a public spectacle to put Twitter in play, and having proposed and then signed a seller-friendly merger agreement, Musk apparently believes that he — unlike every other party subject to Delaware contract law — is free to change his mind, trash the company, disrupt its operations, destroy stockholder value, and walk away.”
My co-worker had an interesting take on their complaint. She said, “I went to go buy a car dealership today. They told me I was buying a dealership with actual real cars on it. Turns out, almost 20% of the cars were fake, toy cars that didn’t drive. So, I decided not to buy the dealership. Now, they’re suing me. Make sense, doesn’t it?!”
Yet, according to leftist logic, that does make sense, and in their world, Musk is obligated to buy Twitter or hand over a billion dollars. Personally, I think he’s in a solid position to force the price to be renegotiated. Twitter is trading an average of $20 under the set price on any given day. Thus, Musk should be allowed to buy Twitter for much less, or be allowed to walk-away. Either way, I can wait to see Musk make minced meat of these fools.