Post the official notice of termination of Twitter’s acquisition by Musk, the social networking site plans to start a legal battle. However, the battle is likely to create chaos for the company.
Last week after the notice presented to Twitter, billionaire Elon Musk is officially trying to pull out of the $44 billion deal. The notice claimed that the micro-blogging site has breached their agreement with false statements during negotiations.
However, in an internal memo to its employees, the site’s General Counsel says that they “plan to pursue legal action to enforce the merger agreement. We are confident we will prevail in the Delaware Court of Chancery.”
While the social networking site does plan to set the stage for a legal battle, the developments in this regard are likely to create chaos for the company.
In a statement given to the Washington Post, Dan Ives, the managing director and senior equity research analyst covering the tech sector at Wedbush Securities said that it is the “worst-case scenario” for Twitter as the company will now be seen as a “damaged goods” for the investors. The shares were already down nearly six per cent in after-hours trading last week post the notice.
Moreover, the legal battle will put Twitter into a financial crisis and darken employee morale. It can put the platform through intense scrutiny, which can eventually affect its image.
As of now, the upcoming time can be seen as a turbulent period for Twitter.