Elon 'Doesn't Have Leg To Stand On' In LB Twitter Case, Says Analyst
Elon Musk "doesn't have a leg to stand on" in what may become a lengthy litigation battle with Twitter, a renowned stock analyst told Yahoo Finance on July 16, 2022, as reported by Ines Ferre.
Photo Insert: Billionaire Elon Musk alleges that the firm misrepresented the number of bots and fraudulent accounts on its social platform.
“After a careful reading of Twitter’s lawsuit against Elon Musk, we flipped our view." Barton Crockett of Rosenblatt Securities told Yahoo Finance, "We were formally skeptical about Twitter, now we’re skeptical about Elon’s position"
Twitter filed a lawsuit against Musk in Delaware earlier this week after the Tesla CEO rejected a $44 billion agreement to acquire the social media business.
Crockett stated, “We do think that Twitter is likely to get some success in court." They will likely be able to use this as leverage to settle with Elon for a price close to the agreed-upon purchase price.
In April, the billionaire made an offer to purchase Twitter for $54.20 a share. Subsequently, he backed out of the arrangement, alleging that the firm misrepresented the number of bots and fraudulent accounts on its social platform.
“What we concluded after reading Twitter’s filings is that Twitter has been making very reasonable efforts to fully disclose the way it calculates [spam bots], the way it explains this to Elon,” said the analyst.
“That flips the side of credibility to Twitter and away from Elon,” he added. “Elon’s only way to get out of this deal, and the way this deal is structured is if he can successfully assert that essentially Twitter has been fraudulent,” said Crockett. “We don’t think Elon has a leg to stand on.”