Tesla CEO Withdraws Bid To Acquire Social Media Giant

Twitter is reportedly preparing to file suit against Tesla CEO Elon Musk after he announced his intention to abandon a $44 billion deal to buy the social media giant on July 8. This would seek to force Musk to honor his original agreement and complete the acquisition, which would have been the largest in history. 

On April 25, the billionaire reached an agreement to purchase it for $54.20 a share, but since then, the price of the social media network's stock has dropped 32.1 percent to a current price of $36.81 a share.

The social media platform is said to be talking with the Tesla CEO about a potential acquisition. Still, it is unclear if the deal will proceed at the previously agreed-upon price, at a revised price, or not at all. Some people think Musk's decision to end the contract might simply be a ploy to renegotiate the details of the expensive pact. ‍

It can get ugly

Twitter is hoping that by bringing in legal help, it can persuade Musk to agree to a sale. The move comes as something of a surprise, given that Musk himself is a major shareholder of the said platform and sits on its board of directors. 

The potential acquisition has been seen as a way for the Tesla CEO to boost his profile and reach a wider audience, or he could use it to sell his products and services.

If the deal does not go ahead, it is unclear what will happen to Twitter. It is possible that Musk could launch his own social media platform, which could end up as a competition. Alternatively, he could simply continue to use it as a way to reach his target audience.

If filed, the lawsuit will likely be the first major test of Musk's often unconventional business tactics. It remains to be seen whether his brash approach will pay off in this case or whether it will be able to force him to honor the deal successfully.

What do you think about this situation? Do you believe that they will be able to force Musk to go through with the deal?

Source: https://cointelegraph.com/news/twitter-lawyers-up-to-force-through-musk-deal-will-it-work
Author: Felix NG