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Who will emerge on top in the Elon Musk vs. Twitter business saga?
Twitter’s board of directors goes against Elon Musk in court to protect shareholders
Elon Musk had reneged on his $44 billion purchase agreement and refused to complete the merger at the agreed price of $54.20 per share.
Twitter’s board of directors had no choice but to go to court to protect the interests of its shareholders.
The Twitter issue is not the first time Elon Musk has exposed his credibility. In 2016, he claimed that Tesla had received nearly 500,000 orders for its new Model 3 sedan (it appears to have only received around 373,000). In 2015, he said Tesla would be profitable and cash-flow positive in the fourth quarter (it seemed it wasn’t).
The new Musk’s position was a sea change for Twitter, which had once courted Musk as a potential buyer. But it highlights the risks boards face in making deals with billionaire entrepreneurs like Musk, who often have strong egos and are used to getting their way.
It was the last week of the Twitter auction, and Elon Musk was getting nervous. He had agreed to buy Twitter, but now he wanted out.
