Twitter plans to sue Musk as quickly as this week and power it to finish the acquisition, folks aware of the matter instructed Reuters.
Authorized consultants say the 16-year-old social media firm has a powerful authorized case in opposition to Musk, however might go for a renegotiation or settlement reasonably than a prolonged courtroom combat.
“We consider that Elon Musk’s intentions to terminate the merger are primarily based extra on the latest market sell-off than… Twitter’s ‘failure’ to conform along with his requests,” Jefferies analyst Brent Thill wrote in a observe.
The contract requires Musk to pay Twitter a $1 billion breakup payment if he cannot full the deal for causes such because the acquisition’s financing falling by way of or regulators blocking the deal. Nevertheless, the payment wouldn’t apply if Musk terminates the deal on his personal.