Elon Musk Is Pulling Out of Twitter Deal — Should He Be Allowed?

After a very public takeover attempt, the deal went through

A few months ago, Elon Musk’s bid to takeover Twitter was accepted after much drama.

Even before that bid was surprisingly accepted by the board, there were some unprecedented moves from Elon Musk.

He was attacking the board via his tweets, the seriousness of the bid was being questioned and the amount was considered to be too low. The board took a poison pill defense to protect from any hostile takeover.

Yet, they agreed to sell to Elon Musk.

Over the subsequent months, Twitter has seen layoffs, and Elon Musk has addressed the company employees directly as the upcoming owner.

After all of these, should he be allowed to walk away?

It Has Been A Murky (And Public) Display From The Beginning

From the beginning, it seemed like Elon himself didn’t believe his bid would be successful. His tweets that he hurled towards the board directors indicated that he wasn’t expecting to work with them anytime soon.

But the board didn’t make it personal. They agreed to sell the company.

If Elon is to walk away now, if he can, public sentiment is likely to go against him. He has tried to pull the righteous business man role who can fix Twitter. Surely, whatever Twitter’s problems are, he can fix? If not, what was the point of the stunt?

In business community as well, future mergers and acquisitions by him will be questioned and likely blocked. His involvement with Twitter has financially affected the company as the stock prices dwindled. Employees were laid off and employee morale went down.

Maybe his legal team can pull this off and convince the court. But there might be something else at play.

The economy is in a less stable state than before. Tesla is not outside the scope of that either.

Most of Elon’s wealth is tied to Tesla. His wealth, this year, has plunged by $62 billion! That’s $18 billion more than what he was willing to pay Twitter.

Elon Musk was also recently sued for $258 billion for a supposed Dogecoin pyramid scheme.

This move by Elon Musk might be just because of this change in his net worth. He is likely to get less value out of his Tesla shares in this weaker market.

This move might also be a stalling technique. If Elon Musk can’t get out of it, he can maybe postpone the payday to wait till his net worth goes up.

Either way, it seems the recent economic turmoils may have played a role.

What will happen to Elon Musk if both Tesla and Twitter go down?

Final Thoughts

If it wasn’t for all the public displays, the world probably would have cared less about Twitter takeover. But that’s not the case.

These back and forth moves are not helping Elon Musk’s image.