- Elon Musk has until Friday, 5 p.m. ET to close his deal with Twitter. ET to complete his Twitter deal. A trial date will also be set.
- Experts predict that the deal will close. Musk could have a difficult time in court if it doesn’t.
- Twitter will be experiencing major changes if Musk becomes its new owner. There are also likely to be layoffs.
Elon Musk is under immense pressure from his army of lawyers.
The billionaire has only four days to close his deal with Twitter or face a trial — which experts say he is It is possible to lose.
The Delaware judge who was overseeing the court case gave the instructions to the parties earlier this month until 5 p.m. ET on October 28To agree to a new agreement or to resume the case in November, it will be subject to a five-day trial.
Insider learned that Judge Kathaleen J. McCormick will not grant an extension to Musk’s trial and would prefer a quick start if Musk misses his deadline. Erik Gordon, a University of Michigan business professor, told Insider.
Ann Lipton is a Tulane University Law School business law professor. She told Insider that unless Musk has a truly intervening event beyond his control, Musk will probably have exhausted the court’s supply for goodwill.
Anat Alon-Beck, assistant professor of law at Case Western Reserve University, said Musk would likely end up buying the company even if he can’t complete the acquisition ahead of the deadline — after paying Millions more in legal fees
However, experts believe Musk will be able to strike a deal before Friday’s deadline.
Musk’s situation would only get worse if he headed to court
If the parties fail to reach an agreement by Friday, then they can continue to negotiate while litigation continues and a trial date has been set.
Musk will not be helped by a continuing court battle.
Alon Beck told Insider, “He knows there is no escape and would like to avoid public humiliation.”
Musk would be charged with a crime if the trial was to go ahead lengthy depositionHe could even see more of his Private textsGerard Filitti is the senior counsel at The Lawfare Project. This international non-profit legal think tank & litigation fund is based in New York City. Insider previously reported.
Last week Bloomberg reportedMultiple sources have confirmed that Twitter and Musk are working together to close the deal before Friday’s deadline. When Musk Original filingEnd the court case and purchase the company at the original cost. Twitter was suspiciousThe billionaire’s intentions. Musk must prove that he has sufficient funding before the company will close the deal.
Musk’s Original financing packageTwitter had $21 billion cash, $12.5 billion margin loans and $13 billion loans from various banks. But, Kali Hay of Insiders reportedOne investor had expressed an interest in withdrawing from the deal.
Bloomberg reported Thursday that the funding is being finalized by Morgan Stanley and other banks. According to Wedbush tech analyst Dan Ives, the billionaire will still need to pay $32 billion more, but he is expected to sell between $5 billion and $10 billion of Tesla stock to finance the deal.
Musk agreeing to the deal by this week is possible, but it is still possible that the story could go on even after the agreement has been reached.
This Thursday Bloomberg reportedPresident Joe Biden was contemplating a security audit of the deal. It includes several foreign investors including Prince Alwaleed bin Talal, Binance Holdings, Qatar’s sovereign fund, and Prince Alwaleed bin Talal, Saudi Arabia. Karine Jean-Pierre, White House press secretary, was present Monday. the reports were “not true.” Gordon stated that while a security review will not stop the deal, it could force Musk into financing even more.
This deal would open a new chapter for Twitter. Last week, The Washington Post reportedMusk said that he would cut 75% of the company’s staff. Twitter employees circulated an open letter protesting potential layoffs on Monday. Time reported.
