Elon Musk Is Not Getting Out of This Deal?
By: Jin Huang
Elon Musk agreed to buy Twitter in April for $44 billion. He had a pitch to make the
company better by adding new features, fending off spam bots and being more transparent
about its algorithms.
But now, Musk wants to cancel this deal, blaming Twitter for not giving him accurate
information. Twitter, on the other hand, is suing him for closing the deal, saying his reasons for
stepping away are excuses to get out of the financial commitment.
The world’s richest man, Elon Musk, is valued at 218 billion dollars, according to Bloomberg
Billionaire Index. However, he doesn’t even have 44 billion dollars in hard cash sitting under his mattress. He also signed two agreements with banks to loan a total of 25.5 billion dollars.
“Musk doesn’t want to own Twitter, the banks don’t want to fund it. We’re in this weird ‘Alice
in Wonderland’ situation trying to force this guy to buy a company he doesn’t want to buy,” said M. Todd Henderson, a professor at the University of Chicago Law School. “Would you want to fund a guy to own a company that he doesn’t want to own?”