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Twitter gains 4% as Delaware judge orders October trial in setback to Musk (updated)

Jul. 19, 2022 12:09 PM ETTwitter, Inc. (TWTR)By: Jason Aycock, SA News Editor125 Comments

Scott Olson/Getty Images News

Elon Musk To Buy Twitter

Updated: Twitter stock (NYSE:TWTR) briefly jumped higher again by as much as +4.5%, after a Delaware judge ruled that the legal battle with would-be buyer Elon Musk can go forward in October - respecting Twitter's

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Comments (125)

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Seems to me the release of Musk's updated Twitter share count would put much of the guesswork to bed. I suspect he hasn't sold a single share.
cbackous profile picture
@nwcccisco I am fairly sure that he is prohibited from buying/selling on the open market once he entered the agreement.
houtex profile picture
I’ve looked for that provision in the public docs. Maybe it was part of the CA signed pre deal? In any case, it’s clear that he has non public information as both sides indicate, so buying/selling securities while in possession of that would be a huge red flag. But then again he’s ignored red flags before (like filing the correct form 13 on the correct day) so who knows?
cbackous profile picture
@houtex yeah, I believe it is an SEC rule, so not spelled out in the agreement. I remember hearing the cnbc guys mention it but I haven't actually seen that written anywhere.
Gotta love the legal system where October is considered "expedited"
generally a good judge when nobody gets what they want.
chrave1956 profile picture
Musk is a White Hat…we want a trial asap…they just walked into another sting operation.

“How do you introduce evidence legally?”
Enjoy the Show.
LOL! Elon the con is going to pay dearly!
Nobody deserves his ass handed to him more than wonder whiner except for you fanbois that excuse everything he does!
This is gonna be an expensive lesson for Felon Musk
truwa profile picture
Case has already been decided, verdict in October is a formality now.

Having Twitter will help Tesla and SpaceX in the long run. The first thing to do is elimitate bots and add ability to send/receive money/crypto among "confirmed" twitter accounts.
cbackous profile picture
@truwa "Case has already been decided"

it actually hasn't. Even if Musk has the weakest of legal arguments, this hearing doesn't mean it is decided. There is still a chance the judge won't go the full Specific performance.

With that said, I think the likely outcome is Specific Performance, but it isn't a for sure thing.
Guy Whitehead profile picture
@truwa why will musk owning TWITTER help SpaceX? SpaceX does not need publicity and anyway Musk can already tweet to his bazillion followers. And how will crypto transfers help Twitter? Thanks.
TommyIrish profile picture

"Case has already been decided, verdict in October is a formality now."

Yes, after 3 months Musk has nothing to invalidate the deal that he signed entirely voluntarily.

Sure, in Musk world you win a debate with a poop emoji.

Guessing not so much in upcoming court case...
MUSK: Twitter, I want to buy you and bring back free speech. In fact, I'm so committed to free speech, I'll pay you $54 a share. Here's a contract.

TWTR: Great, but how about we add a $1 billion break-up fee in case you back out.

MUSK: I am 100% guaranteeing you that I am going to buy you at $54. The on'y possible hangup is coming up with the financing. I am absolutely, positively not going to back out, so fine, I'll sign off on your $1 billion walkaway fee.

cbackous profile picture
@Tanuge You are partly correct. Except for the part where there is a hangup around financing. Musk is on the hook regardless. The deal is not contingent on financing.
@cbackous but .... but.... what about the "I'm a billionaire with millions of Twitter followers" clause?
houtex profile picture
True the deal has the financing written into it but the specific performance remedy falls away if the debt financing falls away. “it is hereby acknowledged and agreed that the Company shall be entitled to specific performance or other equitable remedy to enforce Parent and Acquisition Sub’s obligations …so long as, …(ii) the Debt Financing (or, as applicable, the Alternative Financing) has been funded or will be funded at the Closing if the Equity Financing is funded at the Closing…”

(To be clear the comment you are responding to is more wrong than right about a bunch of stuff, but if the banking system blows up and the banks can’t fund, that is a fairly cut and dry way the buyer can avoid having to close)
superartus profile picture
Twitter should be used for free speech. Twitter has a bot problem. I will buy out Twitter to save America, freedom and get rid of bots. Oh wait...nvm, I don't want it anymore.
street spirit profile picture
good day for twtr … kudos to the judge who didn’t delay the hearing even tho she caught covid
Looking forward to getting my 54.20....Thank you Elon and best of luck with managing Twitter, you're going to need it,plus a few billion more dollars....cheers
In which Elon discovers that billionaire trolling may be funny but the courts only recognize serious and non-poop emojis.
Elon fanbois: the litigation will drag on for years and allow Elon to undertake a fishing expedition inside the inner workings of Twitter through discovery.

Yeah, okay. Do you see how this works now?
@deckofcards im sure they dont see. They are so far up his arse, all they can see is his crap
atpalpha profile picture
sold 30 and 40 strike puts shortly after elon deal was announced - this action is a relief for me - as a life long delawarean, i am thankful for our business court!
Charlie's Munger profile picture
Elon is going to get a corporate force feeding
Jstic profile picture
Why would Musk want to delay at all if he has such a strong case as he has indicated?

There's a deadline in the agreement. I suspect he thinks if he can drag out the proceeding, then he can claim the deal expired and that he's no longer obligated. I doubt the judge will let him do that.
TopGun2 profile picture
@Wilbodave correct, the Judge knew about this. So, the question is: Is the Juge neutral or not? she could have extended the trial date to November and beyond.
cbackous profile picture
@TopGun2 "Is the Juge neutral or not?"

The deadline in the deal isn't a factor. the Two parties are at a impasse, so now it goes to the courts. When the court decides to hear the case is a totally separate thing.
Pure Gallus profile picture
Elon took the joke too far lol.
TommyIrish profile picture
@Pure Gallus

A surprising number of genius ideas appear promising at 3 a.m. only to appear less so when discussed with the Board in the cool light of day!

Oops, I forgot Musk doesn't have a personal BOD!

MAYBE he should get one...
TigerCub911 profile picture
Tempting to short TWTR at this price
cbackous profile picture
@TigerCub911 risky move.
47977204 profile picture
@TigerCub911 You mean buy it before it goes all the way up to the contract price of 54.2. Buy calls now?
cbackous profile picture
@47977204 June $47 strike is juicy
BIZUN1973 profile picture
This sounds delayed to me. I honestly thought the judge would say- we’ll meet at 2:30 this afternoon and I’ll rule at 9:00 am on Wednesday.
cbackous profile picture
@BIZUN1973 Twitter requested an expedited trial in late september, Musk was wanting Feb. Judge ruled for a 5 day trial starting in October. In legal terms, that is not a "delayed" court date.
RunawayBear profile picture
@BIZUN1973 You clearly have not been a court room recently.
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