Elon Musk must complete the Twitter acquisition by this Friday at the latest, or face a judgment related to the deal with the social network where his status as a key participant could be called into question.
The year’s most talked-about business dispute may finally reach a verdict this week, or it could move into a new phase with both sides facing one another in a Delaware court.
Musk agreed to take over Twitter last April for about $44 billion, but he later backed away, triggering a lawsuit from Twitter that seeks to compel him to honor the agreement.
In preparation for the trial, Musk’s team explored a possible reduction in the purchase price, yet Twitter did not concede. With the due process near, Musk signaled that he would proceed to close the deal under its original terms.
This development occurred at the start of October, and since then both sides have been working through the details, as the critical deadline of October 28 approached.
That day, at 5:00 p.m. Eastern Time (21:00 UTC), the judge set a final deadline. If the purchase does not proceed, many analysts expect the social network to prevail and the process could be halted for the time being.
Twitter, at Musk’s insistence and to protect against potential surprises, chose not to withdraw the case until the acquisition takes effect. If the deal does not go through, he would ask the court to compel the billionaire to honor the agreement.
Discussion
In recent weeks, Musk has largely stayed quiet on Twitter, despite a busy summer during which he publicly commented on the platform and its alleged issues while trying to move forward with the purchase.
Now, the limited remarks he has made about Twitter have been cautiously positive. For example, during a Tesla quarterly results presentation last week, he highlighted the platform’s potential.
Negotiations have not yielded many new public statements, but industry sources note that both sides continue to work toward closing the deal before Friday’s deadline.
Recent reports indicated that some investors in the operation received documents related to the purchase, a sign that discussions are progressing in a cooperative direction.
Possible obstacles
Earlier this month, Musk confirmed that the purchase would move forward. The financing of the operation has emerged as a principal hurdle.
The world’s richest individual had initially talked with several banks to secure billions in loans for the buyout. However, the extended process and broader economic conditions have weighed on Twitter’s standing, making financing and valuation more challenging for all parties involved.
A second potential challenge involves the U.S. government. Bloomberg reported that officials in the Biden administration were examining whether the deal might undergo a national security review.
These considerations followed Musk’s remarks on Ukraine that drew sharp criticism from Kyiv and others, which further complicated the public conversation around the investment and its broader implications.