With Elon Musk face on October 4th He thereby agreed to complete the deal to acquire Twitter.
Twitter management may be worried that one or more of the lenders will withdraw their commitments to fund the deal. In the 13D filing on October 4th In a meeting with the SEC, Musk said it intends to complete the merger on original terms with the following terms:
• Pending receipt of proceeds from contemplated debt financing.When
· Twitter v. Musk, etc., subject to immediate stay of action by Chancery Court in Delaware. (CA No. 202-0613-KSJM), and stay the trial and all other proceedings related thereto pending such termination or further order of the court.
Elon Musk would have to pay a $1 billion split fee if the bank funding actually failed. It was also reported that Musk wanted a quick closure. Some very personal texts he sent These were widely reported after being disclosed in public court filings.
Another issue that may have influenced Elon Musk’s decision to go ahead with the deal is legal fees. In August, John Coffee, a law professor at Columbia University, estimated that legal fees could be as high as $1 billion.
Elon Musk is represented in the transaction by Skadden, Arps, Slate, Mahr and Fromm (and is represented in the lawsuit by Quinn Emmanuel Urquhart and Sullivan). Top partners charge $2,000 per hourDealBook reports that lawyers they interviewed estimated that Elon Musk could be billed about $30,000 to $40,000 in total per day.
And that’s not counting the bills Twitter’s attorneys are running, which Elon Musk probably would have had to pay if he lost the lawsuit. We keep Bartlett and our top partners also charge $2,000 per hour. Legal experts estimate it could have cost him $150 million to $300 million in legal fees to date.
Elon Musk’s odds of winning the lawsuit seemed slim, so it probably didn’t make sense to incur so much legal costs. “Musk will lose,” he said. “His lawyers knew it. Twitter’s lawyers knew it. His only hope was for Twitter to give in, but they didn’t.”
That said, Elon Musk is likely to replace a large part of the senior management team and may implement cost-cutting measures to strengthen the bottom line, which could result in layoffs. Twitter’s future looks uncertain. The only clue we have from Musk is a tweet from October 4th.
He previously talked about creating an X.com app to compete with Twitter, so now he may turn Twitter into his vision of x.com. He tweeted on his October 4th that he had acquired Twitter. Accelerate efforts by 3 to 5 years.
https://www.forbes.com/sites/derekbaine/2022/10/05/with-musks-buy-of-twitter-on-the-fast-track-where-does-twitter-go-from-here/ Musk’s acquisition of Twitter is on the fast track, but where does Twitter go from here?