Will Elon Musk be forced to buy Twitter? The agreement validated by the board of directors of Twitter has just been recently broken by Elon Musk. The social network seems determined not to stop there and file a complaint so that Elon Musk is forced to conclude this purchase until the end.
Twitter wants to file a complaint
Elon Musk seems to be collecting legal attacks and this time it's not related to Dogecoin or its companies, but it concerns the cancellation of his proposed takeover of Twitter. On July 8, the social network announced that the boss of Tesla was ending the buyout agreements. Nevertheless, Twitter does not intend to stop there and wishes to file a complaint to force the sale of an amount of 44 billion dollars to Elon Musk.
The bluebird on July 10 took the services of a law firm, Wachtell, Lipton, Rosen & Katz in order to bring the file before the justice of “Delaware Court of Chancery” which mainly deals with the business of the business world.
Last week, Twitter president Bret Taylor promised to take legal action against the SpaceX boss if he didn't honor his pledge. Still, some pundits believe Musk rescinding the buyout promise is another of his tactics to renegotiate the network's price lower.
On the other hand, it is not difficult for the time being to foresee the result that such legal action could bring. Will Musk have to buy Twitter at the announced price? Or at another negotiated price? Or will the sale simply be canceled? That remains to be determined!
Experts comment on Musk's decision
Julian Klymochko, the CEO of Accelerate Financial believes that this attempt to break the contract is simply a strategy by Musk to potentially save billions of dollars in the takeover of Twitter. Angelo Zino, an analyst at CFRA Research joins him and sees no possibility for the sale to take place at the initial accepted price of $54.20 per share.
Last April, Elon Musk struggled to complete a pledge to buy Twitter at $54.20 per share, meanwhile, the social network has lost 32.1% of its value with a current share price of 36 $.81. It, therefore, seems obvious that the boss of Tesla obtains a drop of 15 to 20% compared to the initial price from Twitter or else, he could still continue to criticize the social network for having too many bots among its users according to this last.
It's technically possible for Musk to break the deal, but that would mean paying a billion-dollar fee to Twitter according to the initial filing dated April 25 with the SEC (Securities and Exchange Commission). As a result, it is therefore a safe bet that he has other things in mind than simply withdrawing from the buyout and paying such compensation.
The crypto community comments on this decision
The crypto community is very often behind Elon Musk, particularly because he supports Dogecoin. They took to Twitter to begin this choice and the result seems to be perceived negatively. Most think Elon Musk's promise to fight ad bots by buying Twitter was a good thing.
A poll conducted by exchange OKX on July 8 showed that 38.8% tend to believe that Elon Musk's non-buyout of Twitter is a bad thing for the crypto community while 40.4% say that they don't care. Other opinions hope that if the SpaceX boss does not invest his fortune in the blue bird, he can focus on promoting and helping various companies in the cryptocurrency industry.
Of course, as usual, Elon Musk spoke on Twitter on July 11, where he is actively present, commenting on many subjects. He, therefore, published a meme to illustrate the situation, having fun with the current context, suggesting that if Twitter sued him, they would have to provide the data on the bots he precisely wanted to obtain.
According to the press release from Twitter, Elon Musk has decided to close his takeover proposal, because according to the latter, the social network seems to have made false statements, in particular about its audit process to identify fake accounts and remove them from the platform.
Elon Musk needs no introduction as he has managed to gain respect from the crypto community, in particular by mounting his unwavering support for the DOGE.
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