Tesla (TSLA) CEO Elon Musk has added a fresh twist to the Twitter (TWTR) buyout saga. The world’s richest person has sought to block Twitter’s request for a quick trial of its lawsuit against him. Twitter shares rose more than 4% to $37.74 on July 15. The stock has declined about 12% year-to-date and trades 30% below Musk’s buyout bid price of $54.20.
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Twitter sued Musk after the billionaire said he was no longer interested in acquiring the social media company. Musk had agreed to purchase the company for $44 billion in cash. However, he decided to walk away from the deal after complaints that Twitter refused to release the data he needed to determine the extent of fake accounts on the platform.
Twitter Wants a September Trial as Musk Roots for a 2023 Trial
The latest sticking point in the Twitter buyout lawsuit is when the trial should begin. While Twitter has sought an expedited Trial timetable for the trial to begin in mid-September, Musk wants a slower process. The Tesla boss wants the trial to begin in February 2023 at the earliest.
The terms of the Twitter buyout deal require the transaction to be completed by October 25. If that deadline is missed, then either party can freely walk away from the deal. A hearing is set for July 19 to determine when the trial for Twitter’s lawsuit will begin.
Wall Street Recommends a Hold for TWTR
On July 14, Rosenblatt Securities analyst Barton Crockett upgraded Twitter to a Buy from a Hold. The analyst also raised the price target on the stock to $52 from $33. The new price target implies 38% upside potential.
The stock has a Hold consensus rating based on two Buys and 21 Holds. The average Twitter price target of $44.46 implies 18% upside potential to current levels.
Bloggers Are Fairly Bullish on Twitter Stock
TipRanks data shows that financial blogger opinions are 64% Bullish on TWTR, compared to a sector average of 64%.
Key Takeaway for Investors
Musk’s tactics are only generating more uncertainties about the fate of the Twitter buyout deal. Perhaps the billionaire is only trying to renegotiate a lower price for the deal rather than walking away from it. In seeking to prolong the conclusion of the case, Musk may be attempting to exhaust Twitter and force a concession for a discounted deal price.
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