Twitter Sets up A Legal Team in Order to Sue Musk over A Dropped Takeover
Banks could lose a “nine-figure” payday due to Elon Musk’s decision not to cancel the $44 billion Twitter deal. If the deal is completed, Musk’s financial advisors and Twitter‘s financial advisers could be able to pocket $192 million. He must prove that the transaction had a material adverse impact on his business, which is a difficult task for the billionaire.
After Elon Musk, the billionaire, said that he was going to end his deal to buy Twitter because it disclosed “false” and misleading numbers regarding fake accounts, Musk’s dance of ‘will-he will-he-won’t-he took a new turn Friday.
Twitter has stated many times that about 5% of its users are spam accounts. Musk, through a letter he filed with Skadden to US Securities and Exchange Commission Friday, is certain that it’s higher than 5% and used this belief to end the $44 billion deal.
Morgan Stanley — Musk’s trusted financial advisor — could collect almost $192million in fees.
His decision could lead to a loss of many banks on what promises to be one of the most lucrative paydays on Wall Street.This is the highest M&A earnings this year and the third-largest since 2020 according to Refinitiv data that was cited Financial Times.
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