Elon vs. Twitter: The updated flow chart
- Felix Salmon, author of Axios Markets
Elon Musk's decision to try to terminate his deal to buy Twitter has set up a massive court fight in Delaware, and has significantly reduced the range of possible outcomes.
Why it matters: At stake is the future of one of the most powerful social networks in the world.
What's next: Twitter will claim "specific performance" — which is to say, they will claim that Musk is obligated to buy the company and can't just walk away.
- Musk will claim that Twitter has lied about the proportion of its users that are bots, and that he can therefore tear up the merger agreement.
Between the lines: The Delaware court could rule either way. Or, potentially, the two sides can come to an out-of-court settlement while the trial is ongoing, whereby Musk buys Twitter at a discount to his agreed $54.20 price.
- The big unknown is what happens if the court rules in Twitter's favor, and then Musk simply refuses to pony up the cash to buy the company.
The bottom line: Both sides are going to be spending a lot of money on legal fees for the foreseeable future.
Go deeper: A timeline of the Musk-Twitter deal so far