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A Veteran tech analyst says Elon Musk doesn’t have ‘a leg to stand on’

FILE PHOTO: Elon Musk talks at the Automotive World News Congress at the Renaissance Center in Detroit, Michigan, January 13, 2015. REUTERS/Rebecca Cook

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

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Written by Alex Bruno

Alex is a writer with a passion for space exploration and a penchant for satirical commentary. He has written extensively on the latest discoveries in astronomy and astrophysics, as well as the ongoing efforts to explore our solar system and beyond. In addition to his space-related work, Alex is also known for his satirical writing, which often takes a humorous and irreverent look at contemporary issues and events. His unique blend of science and humor has earned him a dedicated following and numerous accolades. When he's not writing, Alex can often be found stargazing with his telescope or honing his comedic skills at local open mic nights.

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