Elon Musk does not want to purchase Twitter anymore. But Twitter won’t let it go so easily. The social network announced that the termination was being made by the billionaire. It also stated that it would file a complaint against him to force his hand. It remains to be seen if such a strategy is effective.
After Elon Musk’s announcement that he wanted to cancel Twitter’s takeover, this is the question everyone asks today. Now? The billionaire feels that the decision is final. He believes there are too many bots on the platform, so the original $44 billion proposal does not hold. The long struggle he waged against the company to obtain accurate data about the topic is not forgotten. Twitter is not finished with the soap opera. Indeed, Twitter announced shortly after the announcement that it would file a complaint against Elon Musk. The goal was to force Musk to cancel the transaction.
This case could be concluded in court. One side will be the one who must justify the termination of a deal that is worth many billions of dollars. His opponent, who wants to win the jackpot, is on the other.
Twitter files a complaint against Elon Musk. He is not too concerned
This isn’t the end of the story. Professor of law and commerce at Columbia University Ronald Gilson suggests that the parties might reach a financial agreement. One possible solution is for Musk to pay Twitter a sum that reflects Musk’s loss in not purchasing the product. However, this is highly unlikely.
We were reminded that shortly after the acquisition was announced, we discovered that the contract contained a clause that stated that the responsible party would be responsible for $1 billion if the transaction was canceled. This clause also reveals two unknowns. Twitter could decide that the amount is insufficient to compensate for the damages caused by this case. It would be difficult to prove Elon Musk wrong, given the rollercoaster Elon Musk’s involvement in the social network in recent months.
The bot scandal has permanently damaged the reputation of the platform. To make matters worse, it knows that it will never find a market that is as favorable as that suggested by the billionaire. The company’s current value is $28 billion. A different conclusion could be reached if the compensation clause is used correctly. It is possible to witness “specific execution”, which is a legal concept that could allow to force Elon Musk out of Twitter. If no agreement is reached between the businessman or the company before the court goes to trial, it is very likely that the acquisition will close.
This possibility does not seem to make Elon Musk shiver. The billionaire poked fun at Twitter, even though the former is the subject of numerous legal proceedings. He posted a meme, if you want to call it that, where he laughs loud. The caption said: “They said they couldn’t afford Twitter. The bots were then not disclosed by them. They want me to buy Twitter in court. They will now have to provide the information about bots to court.” We didn’t expect much more from our director.