The current news cycle isn’t slowing down, and yet another curve ball was thrown. Twitter is reportedly refusing Elon Musk’s offer to buy the company. This comes just days after it was reported that both sides had apparently agreed to renew the $44 billion original deal.
The Daily Caller describes the situation as follows:
An agreement to buy Twitter between Elon Musk, CEO of SpaceX, and Tesla was reached earlier in the week. Musk’s lawyers claimed that Twitter refused to accept his proposal.
This announcement comes two days after Twitter and Musk announced that they would “close the transaction” at $44 billion, the original price agreed to in an April 2022 agreement. After Musk tried to evade it repeatedly, Twitter sued Musk and forced him to follow the terms of the original deal. Musk’s lawyers claim that the Oct. 17 trial should be stopped, according to a Musk lawyer filing.
The filing states that Twitter will not accept a yes or no answer from them. “Astonishingly they insist on proceeding with litigation, recklessly putting deal at risk, gambling with their stockholders interests.”
What is the real story? Many people think that Twitter doesn’t want to sell to Musk any more. Naturally, those on the right who want the deal to fail are happy. They want the huge social media company, which has been the center of political news, to continue censoring the right and influencing the elections.
However, I believe that this is a misinterpretation of what’s actually happening. This is absurd considering that Twitter is suing Musk to force Musk to sign the deal. They refuse to drop the lawsuit despite Musk’s renewed commitment. That’s the key.
Musk’s latest proposal included a condition that Twitter drop the lawsuit. The first trial date was set for just weeks. Twitter is reluctant to accept this condition because it could lead to Musk’s return after giving up their leverage. This seems to be the problem.
This is a bump in my road, not a wild twist and turn. Both sides are determined to achieve this. Rest of the process is about figuring out how to make a sale without litigation.
UPDATE:
The lawsuit was stayed, so that the transaction can proceed. My initial reading was correct for once. You see, I’m not completely useless.
