Elon Musk Twitter Feud: Is It Close To Settlement For Both?

Elon Musk Twitter Feud: Is It Close To Settlement For Both?

By Yash


The Elon Musk Twitter feud is moving from the boardroom to the courtroom. So, one might think that under the attention of the Delaware Court of Chancery, things will get back on track for the deal than what has happened so far. In theory, the lawsuit that was started by Twitter a few days ago forced Elon to follow through on his promise to buy Twitter. It gives some restricted possible outcomes. Elon could be forced to go on with the promised deal at the agreed price of more than forty billion dollars. He could also shell out a termination fee of nearly a billion dollars to get out of the deal. Elon could be made to give some intermediary price that the court chooses or escape completely. But if there is one thing that has to be learned from all of this, it is that there are no guarantees in life when it comes to the richest man in the world. This is even though there are historical precedents, federal regulations and laws, and binding contracts. The Elon Musk Twitter feud can still be solved through settlement. There are a lot of financial experts that say that it is what is going to happen. It will open up a great new menu of choices. In this article, we will go through some options that can help end the Elon Musk Twitter feud.

Charles Elson, founding director of the Weinberg Center for Corporate Governance. "You could have a non-disparagement agreement. I wouldn't be shocked. He would not disparage Twitter. They wouldn't disparage him. It'd be a mutual non-disparagement. I don't think he would be able to get a change in business practices from them. … Ultimately, this is a business transaction; it's [about], 'How much is this thing worth?' That's all." Alex Bruno, founder of the Glendale-based corporate law firm Bruno Group, said, "I could definitely see an NDA happening which would keep certain terms confidential and allow a side to 'save face. I do not see a change in site policies unless a lot of money comes from Twitter's way. [Twitter may] publicly show their users that they are active in eliminating bots," the focus of much of Musk's criticism.


Nondisparagement Agreements Could End the Elon Musk Twitter Feud

Elon Musk has never been the one that has shied away from launching any criticisms on Twitter. This is despite being among the biggest users of the entire platform. He has previously said that the content moderation policies of the firm were undemocratic. He had also lobbied for many changes to both the business model and the firm's product. He also criticized the handling of automated spam bots present on the site. He has also said that it is the most annoying problem on the site. When he decided to go ahead with the deal to purchase the platform, he did not hold back on the barbs. There is one tweet of Elon that Twitter has included in its present lawsuit against him. He used a single poop emoji to reply to a remark made by the firm's chief executive officer Parag Agrawal. It will not be a big surprise if there is a type of agreement that restricts what Elon can say about the firm. It can be a portion of any long-term settlement to end the Elon Musk Twitter feud. But it remains to be seen whether Elon would agree to abide by these terms of the agreement.

Twitter has said that there is a provision of the deal that tweets of Elon "do not disparage the Company or any of its Representatives. Since signing the merger agreement, Musk has repeatedly disparaged Twitter and the deal, creating business risk for Twitter and downward pressure on its share price." Wedbush analyst Dan Ives said, "The biggest wildcard scenario is that Musk needs to pay Twitter a massive settlement number in the $5 billion to $10 billion range and is restricted from starting his own social media platform. That would be a twilight zone ending to this circus show. If Musk ultimately is forced to take ownership of Twitter by the court, some content areas may be agreed upon as part of a deal."


Non-disclosure Agreements Could End Elon Musk Twitter Feud

There are also some chances of a type of non-disclosure agreement. This could restrict what the parties can publicly share about the troubled relationship they have had since last year. The firm may still have some data that they are going to give to the firm. This is because it is still a firm that is publicly traded. This could prove very appealing to the firm. According to the lawsuit filed by the firm, Twitter has given Elon a lot of access to its corporate intelligence during its dealings. This includes nearly fifty tebibytes worth of raw data from the website. But Elon looks like he is bound by a type of non-disclosure agreement. Thus, he is not too concerned about it. Elon Musk said, "Twitter legal just called to complain that I violated their NDA by revealing the bot check sample size is 100!" 



The Elon Musk Twitter feud can end with the options that have been given in this article. But Elon could also use the settlement as a chance to go for modifications in the policy of the website. This includes highly debated ones about how the speech of the users is moderated by the firm. It also includes the types of things frequent users like him think about a lot, like adding an edit button. Such concessions may come along with any cash settlement that he has to dole out. This is because the firm will try to give him a chance to save his face.