Alex Bruno
One seasoned stock analyst claims that Elon Musk “doesn’t have a leg to stand on” in what may turn out to be a protracted legal dispute with Twitter (TWRT). “We changed our minds after carefully reviewing Twitter’s lawsuit against Elon Musk. Previously, we had doubts about Twitter; now, we have doubts about Elon’s stance, according to Barton Crockett of Rosenblatt Securities on Yahoo Finance Live.
This week, Musk sued Twitter in Delaware after the Tesla (TSLA) CEO backed out of a $44 billion deal to acquire the social media giant. We do believe that Twitter will certainly succeed in court, Crockett added. They’ll probably be able to use it as leverage to get close to the contract price in a settlement with Elon.
In April, the billionaire offered $54.20 per share to purchase Twitter. He then backed out of the agreement, alleging the business had exaggerated the number of bots and phony accounts on its social network.
The analyst said, “After reviewing Twitter’s disclosures, we came to the conclusion that Twitter has been making very fair steps to adequately disclose the manner it calculates [spam bots] and the way it explains this to Elon.” “That shifts credibility from Elon to Twitter and away from them.”
Crockett said, “Elon’s only way out of this arrangement, and the way this deal is written, is if he can successfully allege that Twitter has effectively been fraudulent. “We don’t believe Elon has a case to make.”
According to Twitter’s lawsuit, the firm provided Musk and his staff with plenty of information on bots and fraudulent accounts on the network. The lawsuit seeks to “hold Elon Musk accountable to his contractual duties,” according to a tweet earlier this week from the social media network’s chairman Bret Taylor. With a rise in price estimate from $33 to $52, Crockett upgraded the stock of Twitter from Neutral to Buy.
Source: Yahoo Finance
