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> Thus, the courts will obligate Musk to buy the business as he agreed to in April. That last statement does not follow everything else before. Courts have no
by ekianjo 4y ago
> Thus, the courts will obligate Musk to buy the business as he agreed to in April.
That last statement does not follow everything else before. Courts have no power to do that.
- CogitoCogito 4y agoWell the court could obligate Musk to pay damages. One (simplistic) possibility might be to take the value Musk agreed to pay minus the current value of Twitter and force Musk to pay that. Then in theory Twitter would have received same value in the end.
- jsiepkes 4y agoWhy wouldn't courts have the power to do that? If the court rules you have no grounds to terminate the contract then you will have to execute the contract as originally agreed upon.
- drexlspivey 4y agoCan they force all the banks that agreed to loan them money to go through with it?
- HWR_14 4y agoAs long as Musk has ~40 billion of Tesla stock and can get ~20 billion additional dollars in cash (can get, not just has already), yes.
- Ensorceled 4y agoThey can force Musk to sell his other assets to complete the deal.
- ljlolel 4y agoThey can force his banks to sell enough Tsla shares to buy it
- colinmhayes 4y agoThe banks also signed contracts stating they’d loan the money using Tesla shares and Twitter equity as collateral. They can’t get out of that contract just because musk wants them too.
- ryanbrunner 4y agoHow Musk gets the money in order to fulfill a contract he's entered into is immaterial unless he goes completely insolvent and still can't fulfill it, which will not be the case.
- NoboruWataya 4y agoYes they do, it's called specific performance. It's not the usual remedy for breach of contract, but in certain cases the court will grant it. I believe M&A agreements are one category of cases where US courts are inclined to grant specific performance, but I'm no expert.