Elon Musk could be the owner of Twitter by sometime next week, but the sides have to resolve a few disagreements first. Musk told Twitter this week he is willing to honor their original deal in an attempt to avoid a court trial he's likely to lose. But as of late Wednesday, representatives of Musk and Twitter were reportedly still at odds over terms in an agreement that could end the litigation.
"Sticking points include what would be required from both sides for litigation over the stalled deal to be dropped and whether the deal's closing would be contingent on Mr. Musk's receiving the necessary debt financing," The Wall Street Journal wrote, citing people familiar with the discussions.
According to The New York Times, Twitter "has sought reassurances about how the two sides could guarantee closing and a reaffirmation of the specifics in the previously agreed contract. It's also considering options like court supervision of the closing process and requesting that Musk pay interest to compensate for delays."
Still, Wedbush Securities analyst Dan Ives told Barron's that "Musk should own Twitter by next week," with "minimal speed bumps" standing in the way of closing. A report by The Information also says Musk's turnabout "could mean he will be taking charge of the social media company as soon as next week."
Much of the groundwork for completing the transaction has already been laid—despite Musk's months-long attempt to get out of the $44 billion deal. Musk and Twitter agreed to a merger contract in April, and Twitter shareholders approved the $54.20-per-share purchase agreement last month.
Trial still on; judge considers sanctioning Musk
Musk and Twitter reportedly agreed to postpone Musk's deposition, which was scheduled for today. The trial is still scheduled to begin in less than two weeks, as Delaware Court of Chancery Judge Kathaleen McCormick noted in a ruling yesterday.
"The parties have not filed a stipulation to stay this action, nor has any party moved for a stay. I, therefore, continue to press on toward our trial set to begin on October 17, 2022," McCormick wrote.
The ruling was on a Twitter motion requesting sanctions against Musk "relating to Defendants' allegedly deficient production of text messages and other instant messages to and from Elon Musk," McCormick wrote. McCormick concluded that several of the "deficiencies do not warrant sanctions against Defendants for failure to produce responsive text messages."
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