Twitter Inc (NYSE: TWTR) is up nearly 5.0% on Tuesday after the Delaware Court of Chancery accepted its request for an expedited trial against Elon Musk.
Twitter and Musk to go to trial in October
A five-day trial over the $44 billion takeover deal is now slated to begin in October – a blow to the CEO of Tesla Inc who was pushing for it to not start before February of 2023. But the court ruled:
The reality is that the delay threatens irreparable harm to the sellers and Twitter. The longer the delay, the greater the risk.
Earlier in June, the billionaire said he no longer wanted to buy Twitter, citing inability to verify the number of bot accounts on the social network.
Twitter, however, dubbed the count “unnecessary” in the court since nothing of that sort was a part of the agreement in the first place. Last week, Rosenblatt Securities said TWTR had upside to $52.
Josh Brown says a lot more is on stake here
The communications company is scheduled to report its Q2 financial results later this week. Commenting on the stock market news, Ritholtz’ Josh Brown said this afternoon on CNBC’s “Halftime Report”:
There’s a lot more on the line than what happens with Twitter and Elon Musk here. This is about whether or not the rules of engagement will be enforced. I don’t want to live in a world where we can’t rely on the Delaware Chancery Court.
Elon Musk had agreed to buy Twitter for $54.20 a share. Currently, the stock is down over 25% from that price, much of which, as per the NYSE-listed firm, is because of the billionaire’s “disparage” over the past couple of months.
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