It could be a busy November for Justice Kathleen McCormick, depending on whether Elon Musk keeps his word this week.
A Delaware judge has given the world’s richest man a deadline to complete a $44 billion deal to buy Twitter on October 28 at 5:00 p.m. New York time (10:00 p.m. London). rice field.
McCormick was preparing to preside over the October 17 trial. In the trial, Twitter was expected to demand that Tesla’s chief executive complete the deal he signed in April. Musk had withdrawn his hand in July, but as the mid-October date loomed, he made an abrupt U-turn and finally recommitted to his Twitter acquisition.
His silence shows that Musk is serious about getting this done and that McCormick can turn her attention to other cases.Mr. Musk’s platform has over 100 million followers. and the company had no broadside tweets. Nor has there been a legal salvo from the advisory team who were doing their best to argue that the deal was void.
Now, Musk’s story about Twitter is a positive one. Referring to the platform in Tesla’s quarterly results last week, he said:
He later added that “Twitter’s long-term potential is orders of magnitude greater than its current value.”
This is a far cry from The Man Who Spent the Summer, via Twitter feeds and punchy counterclaims blaming the business for misleading investors and ruining the company it recently agreed to buy. Even if the Oct. 28 deadline is not met, McCormick could end up presiding over a trial in which both sides want the same outcome at this point, even if the parties fall out again. means
Brian Quinn, a professor at Boston College Law School, said he expects the deal to close one way or another. A major obstacle to progress is an investigation of the transaction by the Commission on Foreign Investment in the United States (CFIUS), which can review the transaction and recommend stopping or blocking it, he said. Musk said he is buying Twitter with the backing of non-US investors, including Saudi Arabian investor Prince Alwaleed bin Talal Al Saud (who has already invested in Twitter). . The White House has said it is not aware of discussions regarding security in his review of the deal.
“The deal will close on Friday,” Quinn said. “Otherwise, unless a week or so later goes to court and Musk comes up with a very real and new excuse, the prime minister will [McCormick] You wouldn’t be happy to see them. If this goes to court, Musk will be ordered to make this deal unless the federal government flags the process through her CFIUS orders as inappropriate. ”
In fact, the court believes Musk won’t be ordered to complete the deal he agreed to do at $54.20 a share before Musk’s string of withdrawals over the number of spam accounts on the platform. Watchmen are hard to find.The Delaware legal system, which Twitter is built into, has a reputation for upholding agreed-upon deals.
“I think Musk will close the deal. He knows there’s no way out of it,” says Anat Aron Beck., Professor of Law, Case Western Reserve University, Ohio
The consortium of banks behind the $13bn (£11bn) debt financing package for the deal – Musk and his co-backers are covering the rest with their own money – Musk’s plan It has abandoned plans to sell debt to investors for the company, according to Reuters.
That $13 billion will be on Twitter’s balance sheet, and the company will have to work hard to pay off its debt. In its latest results, Twitter generated about $124 million in negative free cash flow (spending more cash on operations than it earns). Percentage of his 7,500 strong employees on Twitter.
Musk also has to settle the future of Twitter CEO Parag Agrawal. He tweeted a poop emoji at Agrawal, and texts between the pair released as part of the Delaware court process showed Musk was irritated by his Twitter boss. If Musk buys the company, it is reported that he will personally appoint a temporary CEO of the company.
Then there’s the issue of Donald Trump. The former president was banned from Twitter, but Musk, who claims to have “absolute freedom of speech,” said he would reactivate the account. Other accounts banned on Twitter include those of conspiracy theorist Alex Jones and British right-wing political commentator Katie Hopkins. Musk described Twitter as “left-leaning.” But with 90% of his $5 billion annual revenue reliant on advertising, Musk’s job could become even more difficult if he hits the Oct. 28 deadline.
Comments
Post a Comment