Gary Black, the managing partner of The Future Fund LLC and an avid Tesla (TSLA) bull, tweeted his thoughts about the ongoing Elon Musk-Twitter (TWTR) courtroom battle.
Pick the best stocks and maximize your portfolio:
- Discover top-rated stocks from highly ranked analysts with Analyst Top Stocks!
- Easily identify outperforming stocks and invest smarter with Top Smart Score Stocks
In the latest, billionaire Musk has subpoenaed Twitter’s co-founder and Ex-CEO Jack Dorsey to testify in the case. Black says this will scare the Twitter Board since he “knows where all the bodies are buried.”
Interestingly, Dorsey backed Musk earlier when the initial buyout talks started. Black even shared one of Dorsey’s tweets from April 25, in which he vouched for Musk to be “the singular solution” he trusted “to extend the light of consciousness.”
Twitter users have replied to Black’s tweets with enthusiasm. Some think summoning Dorsey will do the trick for Musk. Others believe Dorsey will not be truly honest about Twitter’s issues since he has himself signed the regulatory filings when he was a CEO.
Similarly, the masses are split on whether Twitter will win the courtroom battle and compel Musk to buy the microblogging site. A few think Musk will have his way and either walk out of the deal or have it renegotiated at a lower price. Either way, the courtroom drama is going to be an interesting one to follow.
Musk hopes that Dorsey will help support his argument that Twitter hasn’t been fully honest in disclosing the actual bot size on the social media platform.
On the other hand, Twitter has summoned Musk’s billionaire high-tech allies to court, which has made them very furious. As per a Washington Post report, Twitter hopes to seek extensive communication records from these investors. The subpoenas include “extensive requests for communications, including ‘checklists, timelines, presentations, decks, organizational calls, meetings, notes, recordings related to the deal’s financing.”
The case is to be heard over a five-day trial period starting October 17 in the Delaware Chancery Court. Both sides are determined to have their way in court. While Twitter wants Musk to carry out the $44 billion deal on the agreed-upon terms, Musk wants to back out of the deal, alleging misled information.
Is Twitter a Good Stock to Buy Now?
There is a lot of uncertainty revolving around the Musk-Twitter courtroom battle, leaving very little scope for conjecturing. Wall Street analysts have a Hold consensus rating on TWTR stock. This is based on two Buys versus 16 Holds on TipRanks. The average Twitter price target of $41.40 implies 3.7% downside potential to current levels. Meanwhile, amid all the drama, TWTR stock has gained 31.3% in the past six months.
