Elon Musk vs Twitter: what happens next? The Tesla billionaire ditched his US$44 billion deal, the social media platform sued … and there are 3 possible endings, according to experts

Jul 13 , 2022

Elon Musk and Twitter’s legal battle could last for years, experts say. Photo: Getty Images for The Met Museum/Vogue/TNS, AFP

The Tesla billionaire ditched his US$44 billion deal, the social media platform sued … and there are 3 possible endings, according to legal experts

Dragging out the legal battle might cause Twitter’s stock value to plunge even further, but it could always sell at a discount, like Tiffany & Co. did with LVMH

Elon Musk may be trying to walk away from his US$44 billion deal to buy Twitter, but the saga is far from over.

First, backing out isn’t that simple: the terms of the deal require Musk to pay a US$1 billion termination fee, a fee Musk doesn’t think he should have to pay. Then, Twitter apparently still wants the deal to close. The company hired a major law firm to sue Musk, and the board has said in a statement that it was “committed to closing the transaction at the price and terms agreed upon”.

All of that means that Musk and Twitter will have to gear up for what’s sure to be a legal battle royale – one with at least three possible outcomes …

1. Musk wins

A letter sent from Musk’s lawyers argues that Twitter failed to comply with its contractual obligations to disclose how many fake accounts there are on Twitter’s platform. The letter accuses Twitter of ignoring or outright refusing Musk’s requests for information about Twitter’s users and its business practices, and of making “false and misleading representations” about the number of bots there are on Twitter.

Three legal experts said that Musk’s triumph in court is one of the least likely outcomes to the court battle.