Stubbs, Alderton & Markiles associate Alex Manglinong was asked by Business Insider to provide commentary on Elon Musk’s net worth. Since his Twitter bid, Musk’s net worth has already significantly dropped, by $24 billion, with further loss predicted as he attempts to back out of the deal.
The article highlights the legal issues surrounding Elon Musk’s official demand on July 8, to be released from his contract, which may cost him a $1 billion termination fee. Twitter has expressed that it is ready to go to court if Musk does not uphold the transaction. The article also explains Elon Musk’s defense, claiming Twitter falsified information regarding bots when he initially signed the merger agreement on April 26.
Legally, Musk’s argument on the misrepresentation of the bots is unlikely to get Musk out of paying the termination fee. “Walking away from the agreement without having to pay a penalty fee generally requires a high bar,” Alex Manglinong commented.
Read the full article in Business Insider (subscription required).