Early on Monday morning, Elon Musk replied to the most recent significant step in his continuing dispute with Twitter by tweeting a meme of himself, grinning after it was revealed that Twitter hired attorneys to sue him for moving to abandon his $44 billion takeovers of the business.
Elon Musk Mocking Response To Twitter Lawsuit Over Broken Buyout
Musk tweeted a meme where the CEO is chuckling at the recent turn of events on Sunday.
It focuses on the mega-main billionaire’s argument for walking away from the deal: that, in Musk’s opinion, the firm has resisted giving data to support its claim that spam and phony accounts make up less than 5% of all daily active users on Twitter.
Tesla Inc.’s CEO, Elon Musk announced on Friday that he was canceling his agreement to purchase Twitter because the firm had broken numerous merger agreement clauses.
Elon Musk Cancelling The Agreement
A legal dispute between Elon Musk and the social media business is anticipated to take center stage after the world’s richest man pulled away from the $44 billion transactions, which caused Twitter Inc. shares to drop almost 6% in premarket trade on Monday.
Those familiar with the matter claim that Twitter plans to sue Musk this week at the earliest to force him to complete the acquisition. Late on Sunday, after Twitter was sued for purportedly abandoning its $44 billion acquisition of the firm, Elon Musk reacted to the newest significant development in his continuing dispute with the social media platform by laughing.
With the title that said, they stated I couldn’t purchase; then they wouldn’t release bot info. And then he says now they are trying to compel me (Musk) to buy Twitter in court.
Musk is one of the most followed users on the platform with 100.8 million followers and his tweet received more than 180,000 likes very soon which was easy to predict looking at his profile. In the Delaware Court of Chancery, Twitter intends to sue Musk. Bret Taylor, the chairman of Twitter, said on Friday, that the Twitter Board is committed to finalizing the acquisition on the price and terms agreed upon with Musk.
Even if he is successful in his attempt to terminate the transaction, Musk might be required to pay the company a $1 billion breakup fee unless he can demonstrate that it materially misled him about aspects related to the company’s valuation.
In a research note, Morningstar Senior Equity Analyst Ali Mogharabi stated that they also think that a scenario remains where Musk and Twitter reach a new, lower-price agreement. While the two parties likely are facing a protracted battle in which the final decision remains very uncertain, he says that they believe Twitter may have the stronger case.
Regarding how Twitter’s business may be impacted by the legal dispute with Musk, Mogharabi stated that uncertainty surrounding who will be in charge may lead brand advertisers to lessen their spending on the network.
However, given the impending midterm elections and the likelihood that the drama will promote participation, advertisers might be persuaded to make a little concession.