Musk just used a Chuck Norris Chess Meme to declare ‘Chuckmate’ as Twitter vows to bring him to justice
Twitter shares fell more than 7% on the first day of trading after billionaire Elon Musk said he was dropping his $44 billion bid for the company and the social media platform crashed. committed to challenging Musk in court to enforce the deal.
The Tesla and Space-X CEO agreed to buy Twitter for $54.20 per share in April.
Musk alleged on Friday that Twitter failed to provide enough information about the number of fake accounts it has. However, Twitter said last month that it was providing Musk with a “fire hose” of raw data from hundreds of millions of daily tweets when he raised the issue again after announcing that he would buy the social media platform.
Twitter has said for years in regulatory filings that it believes about 5% of accounts on the platform are fake.
On Monday, Musk continued to taunt Twitter via Twitter over what he described as a lack of data.
He posted a meme of himself laughing at Twitter not disclosing the number of bots and fake accounts on the site, pointing out that the company should now disclose the information to the court.
Later, Musk tweeted an image on the social platform of actor and martial arts expert Chuck Norris sitting opposite the viewer as an opponent in a game of chess. Norris’ image now has only one chess piece on the board.
“Chuckmate,” the Space-X CEO wrote in response to his own tweet.
— Elon Musk (@elonmusk) July 11, 2022
Musk agreed to a $1 billion severance fee as part of the takeover deal, although it appears Twitter CEO Parag Agrawal and company are preparing for a legal battle to force the sale. According The Wall Street Journal.
This may just be the opening salvo to one of the strangest corporate takeover court battles in history. But is it legally possible to force Musk to buy a company he doesn’t want to own?
“What are they going to do if there’s a judgment and he says, ‘Well, I’m still not going to buy it’?” Zohar Goshen, professor of transactional law at Columbia Law School, said The newspaper. “They don’t really have the tools to force it to go all the way. You don’t put people in jail for not buying anything.”
Analysts say that if Musk doesn’t buy the company once the dust settles, it will face a host of challenges in an uncertain digital advertising market.
“For Twitter, this fiasco is a nightmare scenario and will result in an Everest-like ascent for Parag & Co. to meet the myriad challenges ahead regarding employee turnover/morale, headwinds of publicity, investor credibility around fake account/bot issues, and a host of other issues abound,” Wedbush analyst Dan Ives, who tracks the firm, wrote on Monday.
The sale of Twitter shares pushed prices to almost $34 each, nearly $20 less per share than Musk agreed to buy the company. This strongly suggests that Wall Street seriously doubts the deal will proceed, the Associated Press reported.
Tech industry analysts say Musk’s interlude leaves behind a more vulnerable company with demoralized employees.
“With Musk officially withdrawing from the deal, we believe the business outlook and stock valuation are in a precarious position,” wrote CFRA analyst Angelo Zino. “(Twitter) will now have to go about it as a standalone business and deal with an uncertain advertising market, a damaged employee base and concerns about fake account status/strategic direction.”
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