Musk said he will buy the social media platform after six months of trying to wriggle out of the deal.
The deal is back on according to Musk. The original agreed-upon price is $54.20 per share and Musk is willing to go ahead with it.
What changed Musk's mind is not clear. Maybe it was the prospect of a high-profile trial, which was due to start in two weeks, or maybe it was just a negotiation tactic.
The fact that the fight is still going on doesn't change. The stock spiked after the billionaire said he would stick to the deal.
If the case proceeds in court or the suit is dropped, what will happen to it? Its options are listed here.
There is a specific performance clause in the merger agreement that led to Musk's troubles. If Musk pulled out of the deal, he could be sued for damages by the company, but it could also try to enforce the terms of the deal.
The upcoming case will make a decision on that.
If Musk is waving a white flag or pulling a fast one, it's going to be decided by the social network. A request for comment was not immediately responded to by the social networking site.
The trial will take place in Delaware on October 17th.
It is possible that the court will order Musk to complete the deal. Experts say his arguments for getting out of it have not passed legal muster.
Even though there was no mention of the issue in the merger agreement, he alleged that there was a misrepresentation of the number of fake accounts in public filings. Musk claimed that Peiter Zatko's allegations of data privacy and security violations constituted a material change to the terms of his contract and used that as an excuse to get out of the deal.
There is a chance that Musk will back out of the agreement. If they think it might be a delay tactic, they might not accept the offer immediately. Since Musk's antics have caused a months-long delay, the company will have to pay interest on the agreed upon fee.
It was Musk who suggested the deal and he agreed to it in binding terms. He was against Delaware corporate law, against a contract that he signed, and against himself.
Musk is buying a company. His idea was always there. It wasn't enough for buyer's remorse to be an excuse.
All Rights Reserved © 2024
