After Musk tried to pull out of a deal to buy the social media network, it was decided to file a lawsuit.
Legal experts say things aren't looking good for Musk in the courtroom. His claim that he's backing out of the deal because of the economic downturn is weak, meaning he'll likely be forced to go through with the acquisition even after a dire economic downturn has lost him billions.
Insider reported that the judge overseeing the lawsuit in the Delaware Chancery Court has a history of forcing buyers to complete acquisitions. The small matter of Muskwaiving his due diligence gave the court more reason to side with the company.
It would mean that Musk would have to pay full price for his initial offer. It would be awkward, because Musk doesn't seem to want the site anymore, and the employees of the company don't want him running it.
There is a chance that Musk will have to pay a large fine. Since there's more money on the line, it's likely that Twitter's lawyers will only use a $1 billion penalty as a last resort, even though it was included in the contract with Musk.
Musk's attempt to buy the company has caused a lot of financial damage to it, as well as his other ventures.
Since he announced his bid, the stock price of the company has fallen. When Musk announced his bid in late April, shares were around $50. Musk's behavior presaged a rocky road even if he is forced to go through with the deal.
The disastrous acquisition plan could threaten Musk's beloved car venture. Half the financing Musk came up with to buyTwitter came from his own pocket.
The company is not doing as well as it could. Thanks to Musk's "super bad feeling" about the economy, the CEO announced he is pulling on the purse strings and firing a large amount of employees.
"My sense is that Musk's aggressiveness throughout this deal is making it more and more likely that he's going to suffer a big loss, and I think that's because of the way he's spoken throughout this deal."
Chances are that she will place blame on Musk for making a mess of this whole thing.
"This is a very uphill battle from Mr Musk's point of view, given the public facts that were available and the complaint that was filed by the attorneys for the company," said Talley.
The Chancery Court could try to seize Musk's assets if he had to pay up.
Robert Miller, chair of the Iowa College of Law's corporate finance department, said last week that the court is a court of equity. It's a Delaware corporation.
Miller argued that the court could reach Musk's stock.
Given Musk's history of lashing out at lawyers, there's a good chance it will turn into an ugly legal battle.
Even for the richest man in the world, a $44 billion hole in Musk's net worth would be hard to take. Musk's reputation is damaged more than that.
Musk has repeatedly failed to play his cards right since announcing his bid, offering little in the way of explanation as to why he was reversing course.
It's a smoldering dumpster fire, and it's possible that Musk is already lighting the matches.
The Delaware judge who may force Musk to pay tens of billions of dollars was described byInsider as pleasant and humble.
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