Elon Musk has announced that he will be withdrawing his bid for Twitter.
Needless to say, the Twitter's board of directors want the massively over-valued buyout to continue, and is threatening to file suit.
If I were advising the Twitter board, now that this appears to be heading to litigation, they should suspend Musk's Twitter account until there is a full resolution.
Not only is the most effective possible strategy for the board to take, but it appears to be required by their fiduciary duty:
Elon Musk is terminating his $44 billion deal to buy Twitter but the company vowed Friday to still complete the deal, setting the stage for a legal battle that could lead to more turmoil and uncertainty for the social media network.
After months of growing doubt that he intended to close the deal, Musk’s lawyers sent a letter to Twitter arguing he has a right to drop out of the agreement because Twitter hasn’t given him enough information about the company’s business. Musk’s filing was blunt about his intentions: he is “terminating their merger agreement,” the letter attached in a Securities and Exchange Commission filing Friday said.
But Twitter’s board hit back at the billionaire Friday, saying it would pursue legal action to enforce the deal. Legal experts have said it will be difficult for Musk to just walk away from the agreement. The agreement also has a $1 billion breakup fee.
Friday’s development sets the stage for a legal battle that could likely stretch for months and signals more uncertainty for a social media company that has been embattled by leadership changes, a falling share price and low morale.
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But Twitter’s board hit back at the billionaire Friday, saying it would pursue legal action to enforce the deal. Legal experts have said it will be difficult for Musk to just walk away from the agreement. The agreement also has a $1 billion breakup fee.
IMHO, the best outcome for Twitter is no buyout and the breakup fee, because Musk would be a complete horror show as CEO.
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