But on Friday, he sent a letter to Twitter saying he was pulling out of the controversial deal. He had accused the company of "misleading" statements about the number of fake accounts.
This jilt is, of course, hard for Twitter to take and a court battle looms.
The consensus is that Twitter are well-positioned to win because according to Ann Lipton, a professor of law at Tulane University who specialises in corporate litigation, such merger agreements are "designed to prevent buyers from getting cold feet and deciding they want to walk away".
Musk’s lawyers also point to recent Twitter employee layoffs and hiring freezes, which they say are contrary to the company's obligation to continue operating normally.
Those arguments may be valid, but they do not merit pulling out of the deal, says Lipton, dismissing them as "nitpicky".
"It's not enough, unless he can show that the representations (about fake accounts) are not just false, but also that they dramatically call the fundamentals of the deal into question", she explains. "Looks very much like Musk is legally wrong".
The entire saga has left observers baffled by what Wedbush analyst Dan Ives described as "one of the craziest business stories ever".
As he told AFP: "I think it starts off as a circus show and it's ending as a circus show"!
No comments:
Post a Comment