Musk & Twitter Drama Process -- Future Outlook?
After months of dramatic news, Musk finally announced he terminated his $44 billion Twitter takeover bid on July 8.
The reason was Twitter's “breach” of multiple provisions of the merger agreement.
1. The drama process between Elon Musk & Twitter:
A quick summary:
Musk started to seek a takeover in April, but changed his statements in May, and announced to abandon its takeover in July.
On July 7, Twitter said the proportion of fake accounts has been below 5% since 2013, but Musk insisted that the proportion may be closer to 20%
Some analysts believe that Musk may want to seek a lower takeover price.
2. Refused to pay the breakup fee - Twitter pledging to take Musk to court
According to the previously signed agreement,
if one of them terminates the deal, then it needs to pay a breakup fee of $1 billion.
But Musk is now claiming that Twitter is at fault for not providing information about the fake account" that was critical to Twitter's business and financial performance, which led to the suspension of the acquisition.
But Twitter hired a prominent law firm, Worchall Lipton, to prepare a lawsuit against Musk.
Larry Hamermesh, a University of Pennsylvania law professor who specializes in Delaware corporate law disputes,
describes an MAE as an “unexpected, fundamental, permanent” negative development — akin to blowing a hole in the transaction that can’t be fixed.
3. What is the outlook for the takeover case?
1. if Musk loses the case, he may be forced to continue with the acquisition at $54.20 per share.
2. if the court allows the acquisition to be abandoned, Musk may have to pay a $1 billion breakup fee.
3. The two sides reach an out-of-court settlement and Musk continues the acquisition at a lower price.
Bottom Line
According to Daniel Ives of Wedbush Securities,
what Musk had done is a "nightmare" for Twitter, and $Twitter (TWTR)$ could face a protracted legal battle and shares may fall to $30 if the deal fails.
So what's your opinions towards Musk's termination of his acquisition?
What might be the final outcome of this takeover?
Are you bullish on Twitter's future development?
Share your thoughts in the comment section & win tiger coins~
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
The drama process between Elon Musk & Twitter.
And yes I am quite bullish.
埃隆·马斯克就像风向标一样多变。一开始，他对购买Twitter很感兴趣，但现在他变得冷淡了。自从他宣布决定放弃与Twitter的交易以来，该公司的股价大幅下跌。有传言称，分析师甚至可以触及11美元。
即将到来的法律案件将是一个巨大的、漫长的案件，对埃隆·马斯克和推特都没有好处。唯一受益的将是律师。我同情Twitter的股东和员工。他们是这次余波的受害者。
最终的结果将取决于评委。但在道德上，Twitter占据了更高的地位。埃隆·马斯克至少应该支付10亿美元的分手费。但我真的很想看到埃隆·马斯克和Twitter达成和解，以更低的价格收购Twitter，事情会平静下来。这对每个人来说都是最好的结果。
@mainstreet_trades@TigerStars @CaptainTiger