Twitter Rejects Elon Musk's $44 Billion Original Bid
As we all know, Twitter has recently been hoping to "sell" itself as soon as possible, but at this time it seems contradictory to reject Elon Musk's offer.
But in fact, Twitter is refusing at this time in order to move forward with the trial scheduled for Oct. 17. If it wins the case, Twitter will eliminate the risk of losing the merger and take the initiative in the deal.
Back on Oct. 4, when Twitter Inc. filed with the U.S. Securities and Exchange Commission (SEC), Elon Musk was willing to complete the acquisition of Twitter for $54.20 per share, a total of $44 billion, as originally agreed.
It should be noted that in this document, there are three key points: first, Elon Musk expressly requested that Twitter withdraw its lawsuit against it; second, the transaction is required to be completed next Monday (Oct. 10); and third, the success of the merger also depends on whether Elon Musk can obtain debt financing.
Twitter intends to move forward with the trial
But Twitter, for its part, only said it would accept the offer to restart the acquisition and remained silent on the issue of withdrawing the lawsuit.
In April this year, Elon Musk launched a takeover bid for Twitter. But on July 9, the world's richest man again announced his withdrawal from the deal, citing Twitter's violation of several acquisition terms and misrepresentation of the number of fake accounts on the platform.
Twitter then filed suit in the U.S. Court of Chancery in Delaware, demanding that Elon Musk honor the acquisition agreement. The case was originally scheduled to go to trial on Oct. 17, but has been postponed until Oct. 28. If Twitter chooses to withdraw the suit before then, the two sides will not have to continue to face each other in court.
According to media reports, Elon Musk's situation in the lawsuit has taken a sharp turn for the worse recently, and the court is likely to rule in favor of Twitter soon, requiring Elon Musk to fulfill the original purchase agreement.
Elon Musk's slowdown plan may be seen through
According to media analysis, Twitter may be concerned that Elon Musk's reintroduction of the takeover is a delaying tactic, after all, he has tried to postpone the trial twice before, but both times were unsuccessful.
Andrew Jennings, a professor at Brooklyn Law School, believes that Twitter will not drop the lawsuit based on Musk's word alone until it is certain that the acquisition can be completed.
Jennings added that Twitter wants to "lock in" the deal and not allow Musk to have room to maneuver.
But in fact, Twitter is refusing at this time in order to move forward with the trial scheduled for Oct. 17. If it wins the case, Twitter will eliminate the risk of losing the merger and take the initiative in the deal.
Back on Oct. 4, when Twitter Inc. filed with the U.S. Securities and Exchange Commission (SEC), Elon Musk was willing to complete the acquisition of Twitter for $54.20 per share, a total of $44 billion, as originally agreed.
It should be noted that in this document, there are three key points: first, Elon Musk expressly requested that Twitter withdraw its lawsuit against it; second, the transaction is required to be completed next Monday (Oct. 10); and third, the success of the merger also depends on whether Elon Musk can obtain debt financing.
Twitter intends to move forward with the trial
But Twitter, for its part, only said it would accept the offer to restart the acquisition and remained silent on the issue of withdrawing the lawsuit.
In April this year, Elon Musk launched a takeover bid for Twitter. But on July 9, the world's richest man again announced his withdrawal from the deal, citing Twitter's violation of several acquisition terms and misrepresentation of the number of fake accounts on the platform.
Twitter then filed suit in the U.S. Court of Chancery in Delaware, demanding that Elon Musk honor the acquisition agreement. The case was originally scheduled to go to trial on Oct. 17, but has been postponed until Oct. 28. If Twitter chooses to withdraw the suit before then, the two sides will not have to continue to face each other in court.
According to media reports, Elon Musk's situation in the lawsuit has taken a sharp turn for the worse recently, and the court is likely to rule in favor of Twitter soon, requiring Elon Musk to fulfill the original purchase agreement.
Elon Musk's slowdown plan may be seen through
According to media analysis, Twitter may be concerned that Elon Musk's reintroduction of the takeover is a delaying tactic, after all, he has tried to postpone the trial twice before, but both times were unsuccessful.
Andrew Jennings, a professor at Brooklyn Law School, believes that Twitter will not drop the lawsuit based on Musk's word alone until it is certain that the acquisition can be completed.
Jennings added that Twitter wants to "lock in" the deal and not allow Musk to have room to maneuver.
