Twitter is stuck. Elon Musk decided he was No longer want to buy The social media site for $ 44 billion after all. Neither side is expected to emerge from this battle in good shape.
Twitter intends to sue the electric vehicle boss to enforce the closing of the deal at the agreed price of $ 54.20 per share. It has Hired an elite law firm Wachtell, Lipton, Rosen & Katz represent it.
An expensive legal battle is not in anyone’s interest. But Musk leaves Twitter little choice. If it allows Musk to stay away, it could face lawsuits from its shareholders.
The Twitter board has run out of good options. Since Musk unveiled its offer on April 14, technology stocks have been selling heavily amid rising interest rates and recession fears. Musk’s offer provided Twitter with a temporary floor. But since then the shares have shed a quarter of their value and are trading 37% below Musk’s offer price.
At its peak in February 2021, the stock was worth more than $ 77 a unit. But the slow pace of Twitter’s growth and reliance on advertising revenue, coupled with a wholesale revaluation of technology stocks, means the social network has no possible way to bring back those highs until its fight with Musk is over.
While this will continue, so will unrest in society. The senior executives have resigned. Mass layoffs and cost-cutting measures have been announced. Among the remaining employees, morale is low. Advertisers, who contributed nearly 90 percent of the group’s revenue last year, are shocked by Musk’s relentless and negative focus on the network’s fake accounts.
Twitter’s ambitious goal of increasing annual revenue to $ 7.5 billion and reaching 315 million daily users by the end of 2023 – a growth of about 50% from 2021 levels – seems less realistic from day to day. The only winners in this mess will be the lawyers.
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Twitter: Musk tries to hit edit button on deal Source link Twitter: Musk tries to hit edit button on deal