American billionaire Elon Musk does not want to buy Twitter, but he cannot just walk out of the deal. The businessman will need to prove before a Delaware judge that Twitter did not stand up for its side of the April merger agreement.
Twitter chairman Bret Taylor vowed that the company would fight in the Delaware Court of Chancery to force Musk to honor his agreement. The application could be submitted as early as the beginning of this week. Bloomberg citing their sources.
If the judge rules against Musk, he could be forced to pay Twitter shareholders $54.20 a share. A ruling in his favor would allow the billionaire to walk away, although he would likely have to pay to break the deal. The initial set amount was $1 billion.
There is also the possibility that both parties will come to an agreement under which Musk will make the acquisition anyway, possibly at a lower price. Shares of Twitter fell 6.4% to $34.45 at the July 11 open in New York.
Recall Musk backs out of his $44 billion deal to buy Twitter. The world’s richest man cited controversy over the number of spam accounts on the platform.
According to legal experts, it will be difficult for Musk to get out of the deal. The billionaire faces a long court battle with Twitter that could take many months to resolve. CNBC.
