Elon Musk made Twitter meme legal threat after scrapping takeover plan

Elon Musk on Monday mocked Twitter Inc’s threat to sue him after it backed out of a $44 billion ($65 billion) takeover deal by tweeting that the social media firm would need to reveal more about the bots. and spam accounts.
Shares of Twitter fell about 10% to $33.26 on Monday, a 38% discount from Mr Musk’s $54.20 offer, as the company faced a double whammy in a broader stock market downturn. and investor skepticism about the deal. Shares of Tesla Inc fell 6% to $706.16.

Monday’s series of tweets was the Tesla chief’s first response since he made public his intention to pull out of the offer on Friday as Twitter violated several provisions of the merger agreement.

“Twitter’s board of directors should consider the potential harm to its employees and shareholders from any additional internal data disclosed in the course of the trial,” Benchmark analyst Mark Zgutovich said.
Francis Pileggi, a corporate lawyer with Lewis Brisbois in Delaware, said Musk could put bots first in the lawsuit if he defends Twitter’s lawsuit, alleging the company misrepresented the number of fake accounts.

“I would be surprised if he was banned from receiving this information,” Pileggi said.


Mr Pileggi said that if the number of fake accounts many times exceeds the 5% estimated by Twitter, it could lead to negotiations to lower the price of the social media platform.
Twitter plans to sue Musk as early as this week and force him to complete the deal, people familiar with the matter told Reuters.
Legal experts say the 16-year-old social media company has a serious legal case against Musk, but it could choose to renegotiate or settle the dispute instead of a lengthy legal battle.
“We believe that Elon Musk’s intentions to end the merger are based more on the recent selloff in the market than … on Twitter’s ‘failure’ to comply with his requests,” Jefferies analyst Brent Till wrote in a note.

“In the absence of a deal, we wouldn’t be surprised to see the stock hit a low of $23.5.”