Jul 8, 2022 - Economy

Elon vs. Twitter: The updated flow chart

Chart: Danielle Alberti/Axios
Chart: Danielle Alberti/Axios

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

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