As Musk moves to abandon deal, Twitter faces ‘worst case scenario’

Elon Musk’s attempt to terminate his Twitter acquisition will likely force the social network into a protracted legal battle and send its stock price diving — thrusting a new level of chaos upon the firm after months of public disputes have battered its reputation and employee morale.

In short? “This was worst case scenario for Twitter, and now it’s happened,” said Dan Ives, the managing director and senior equity research analyst covering the tech sector at Wedbush Securities.

Ives warned that Musk’s bid to walk away may make the company appear to be “damaged goods” in the eyes of other investors or potential acquirers. Twitter shares were down nearly 6 percent in after hours trading on Friday. Wedbush Securities projects the stock could sink to between $25 and $30 when the market reopens Monday, down more than 30 percent from where it closed Friday afternoon before Musk’s filing.

In a Friday evening news release, Twitter’s board threatened to “pursue legal action” to enforce the terms of the $44 billion deal Musk struck in April to buy the social network and take it private. He is required to go through with the purchase, barring a major change to the business, which legal experts say is a difficult to prove.

By NC ScoutPublished On: July 11, 2022Categories: Uncategorized1 Comment

About the Author: NC Scout

NC Scout is the nom de guerre of a former Infantry Scout and Sergeant in one of the Army’s best Reconnaissance Units. He has combat tours in both Iraq and Afghanistan. He teaches a series of courses focusing on small unit skills rarely if ever taught anywhere else in the prepping and survival field, including his RTO Course which focuses on small unit communications. In his free time he is an avid hunter, bushcrafter, writer, long range shooter, prepper, amateur radio operator and Libertarian activist. He can be contacted at [email protected] or via his blog at brushbeater.wordpress.com .

One Comment

X-Beast419 July 11, 2022 at 12:47

This is a smart move by Elon Musk. If Twitter pursues legal action they will be forced in “discovery” to show how many Bots and fake accounts they really have. Then they will be in even deeper trouble for defrauding investors and advertisers. Someone will go to prison for this.