Announced during a hearing via Zoom earlier this week, Judge McCormick claimed that any further delay would cause “irreparable harm to the sellers and Twitter” – citing the company’s near $3 billion drop in value, and the defendant’s claim of slanderous comments following Musk’s initial offer retraction. In July, Musk abandoned the deal, citing concerns over the number of bots on the social media platform, which he claims to be fundamental to Twitter’s business and financial performance. In a letter to the company, Musk via his lawyer accused Twitter of misleading regulators, claiming that its failure to present the information and data requested for the purchase meant that it did not comply with its contractual obligations. In response, Twitter filed a lawsuit against the Tesla CEO, claiming that Musk had violated the merger agreement – the terms of which would result in a $1 billion break fee. According to NPR, some Wall Street analysts say Twitter’s board and management should be open to accepting a lower price to avoid a lengthy legal battle. Others say that Musk could always pay the $1 billion break fee if he wants to back out of the offer. Still, whatever the outcome, the Twitter-Musk showdown — now confirmed to take place in October — could have a detrimental effect on the social media platform’s value, so the sooner the two reach an agreement, the better.
