After surprising the masses and going back to the pre-agreed terms of acquiring Twitter (NYSE:TWTR) at $54.20 per share, Elon Musk seems to be breaking his winning streak in the Musk-Twitter Saga. In the courtroom battle, the weighing scales may be tilted toward the social media company. Chancellor Kathaleen McCormick, who is presiding over the hearing at the Delaware Chancery Court, is preparing for the court hearing scheduled for October 17.
Don't Miss our Black Friday Offers:
- Unlock your investing potential with TipRanks Premium - Now At 40% OFF!
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
“The parties have not filed a stipulation to stay this action, nor has any party moved for a stay,” Chancellor Kathaleen McCormick wrote Wednesday. “I, therefore, continue to press on toward our trial set to begin on October 17.”
However, the judge has asked Musk’s lawyers to produce all evidence as required by the Twitter legal team. The judge noted there is reason to believe that some of Musk’s encrypted electronic messages, which have been produced in the court, may have disappeared using apps such as Signal, and thus, “those communications are irretrievably lost.”
What is Twitterati Saying about the Battle?
Notably, influencers on Twitter, Musk’s fans, and those who are following the saga closely, have given verdicts on the case as per their understanding.
Wedbush analyst Daniel Ives noted on Twitter that Musk’s $12.5 billion financing deal remains the current focus for Wall Street analysts. Banks are committed to the financing, and Musk’s only resort remains to undertake a leveraged buyout (LBO) despite the brutal interest rate environment.
Similarly, Gary Black, managing partner of The Future Fund LLC, thinks that shares of the electric vehicle maker Tesla (NASDAQ:TSLA) will remain under pressure until Musk clarifies whether he intends to sell more shares to fund the takeover. On the other hand, Musk still has the option to pay the $1 billion break-up fee and walk away from the deal should banks refuse the financing. In this case, Black predicts that TSLA stock will jump 5% to 10%, and TWTR stock will crash to the mid-30s.
What is the Future of Twitter Stock?
There is a lot of uncertainty surrounding TWTR stock’s trajectory amid the Musk buyout drama. On TipRanks, analysts have a Hold consensus rating based on two Buys and 17 Holds. The average Twitter price target of $43.13 implies 15.9% downside potential to current levels. Meanwhile, the stock has gained 20.3% year-to-date.
