The fight between Elon Musk and Twitter goes to court

The company has already submitted that it will take the case to the Delaware Court, a court that specializes in large commercial disputes, to enforce the agreement between the parties, and possibly seek monetary compensation. Photograph: Dadu Rovich/Reuters

The battle that Elon Musk and Twitter fought months ago over the purchase of the social network will now go to court after the billionaire businessman’s decision to cancel the operation, leaving justice in front of a practically unprecedented case.

A priori, according to expert opinions collected this weekend by specialized media, Twitter has an advantage in this legal battle, as it will seek Musk to complete the acquisition of its business on agreed terms.

The company has already submitted that it will take the case to the Delaware Court, a court that specializes in large commercial disputes, to enforce the agreement between the parties, and possibly seek monetary compensation.

Musk argues that Twitter provided “false and misleading” information during the negotiations and that it did not provide the information it deemed necessary to close the deal.

These mainly refer to the number of fake or spam accounts on the social network, which according to Twitter account for less than 5% of the total, a figure that the richest man in the world began to question immediately after announcing his purchase. a company.

In the United States, there are not many precedents for similar cases, especially operations of this size, but in most similar episodes, the buying party was forced to continue the operation.  (Photo: the newspaper)
In the United States, there are not many precedents for similar cases, especially operations of this size, but in most similar episodes, the buying party was forced to continue the operation. (Photo: the newspaper)

To many analysts, the issue of “bots” is simply the excuse that Musk has sought to undo a seemingly increasingly disruptive operation, with the company’s shares under $37, a far cry from the $54.20 per address that Musk agreed to. Pay last April, and with a sharp drop in the price of Tesla, and thus the billionaire’s fortune.

But the businessman did not include many conditions in the purchase, so it seems difficult for the court to accept the reasons for the retraction.

According to experts, Musk’s ploy is to prove that Twitter provided information about his work that deviated significantly from reality, which is very difficult.

In other words, it will not be enough for him, for example, to prove that fake accounts on the social network account for 6 or 7% of the total, since this will not a priori change the prospects for the business that he agreed to buy in a sufficiently significant way.

In the United States, there are not many precedents for similar cases, especially operations of this size, but in most similar episodes, the buying party was forced to continue the operation.

For many analysts, the question of
To many analysts, the issue of “bots” is simply the excuse that Musk has sought to undo a seemingly increasingly disruptive operation, with the company’s shares under $37, a far cry from the $54.20 per address that Musk agreed to. Pay last April, and with a sharp drop in the price of Tesla, and thus the billionaire’s fortune. Photograph: Mike Blake/Reuters.

However, even if the court forces Musk to complete the process, it will be difficult to force the impulsive entrepreneur to comply, and the whole process may do more harm to Twitter.

Thus, analysts see that it is likely that the two parties will reach some kind of agreement, which will allow either Mask to abandon the purchase by paying a large compensation (perhaps greater than the $1,000 million break clause included in the contract). that it is subject to conditions) or that it lowers the price of Twitter so drastically that the transaction is closed.

(With information from EFE)

Read on:

From the time he announced his withdrawal from the Twitter purchase, Elon Musk lost more than twice what the company was worth
The dire consequences that await Elon Musk if he regrets buying Twitter
Elon Musk said he canceled the purchase on Twitter: He accused the company of not providing all the information he requested

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