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Curious if Musk can sue them for a better price. This could get Twitter in some regulatory trouble...
by Mikeb85 5y ago
Curious if Musk can sue them for a better price. This could get Twitter in some regulatory trouble...
- jedberg 5y agoHe can still back out of the deal. This is part of the due diligence. I suspect it's coming out now because they know that Musk will reveal it if he finds out through due diligence.
- chernevik 5y agoI don't think so. I've read that he doesn't have a due diligence provision in the merger agreement. And, I don't see any such provision in the agreement, which I _think_ is here: https://www.sec.gov/ix?doc=/Archives/edgar/data/0001418091/000119312522120461/d310843d8k.htm https://www.sec.gov/ix?doc=/Archives/edgar/data/0001418091/0... He could back out paying the $1 billion breakup fee, and I suppose he might have some cause of action if there were serious problems with the reps and warranties. But IANAL.
- rcMgD2BwE72F 5y ago>He can still back out of the deal. That would cost him (or Twitter) $1B.
- powera 5y agoI assume Mr. Musk waived his right to any due diligence as part of his agreement with the Twitter board.
- Mikeb85 5y agoIt's a public company so all the information should be there, due diligence isn't really a thing in this case. It's more the aspect that Twitter likely committed a financial crime, defrauding shareholders and the acquiring party.
- blipvert 5y agoAccidentally misreporting linked users - less than 1% ? If they were financial accounting errors, maybe. But for an audience measure that’s just a rounding error.