What should you fear when you are the richest man in the world? Usually not much. But Elon Musk loves the media attention so much that he doesn’t always try to get attention, even if it means getting himself into trouble.
His last trick: loudly announcing his desire to buy Twitter, before finally backing down despite the action already started. Only, Twitter has no intention of letting him get away with it, and it could cost him dearly. Quartz has asked several experts what the CEO fears most.
Leading the list is Delaware court counsel Kathleen McCormick, as Twitter sued the billionaire.
This 230-year-old court is a “court of equity” that can offer solutions to disputes it has to arbitrate that are not strictly prescribed by law. Instead of a small fine, Musk could be forced to complete the $44 billion deal he has committed.
The judges of this court, and thus Kathleen McCormick, have a reputation for competence, experience, and competence. “I don’t think she would be stunned by any attempts to distract or confuse which, at this time, with no new information added, seems to be Musk’s only hope.”says Ann Lipton, who specializes in business law at Tulane University.
cloud of worries
The second threat is the financial policeman of the United States, who has already outgrown the swordsman with him. Elon and his brother Kimball are suspected of insider trading after selling the equivalent of $108 million (€105.7 million) in Tesla shares before the planned acquisition of the social network was announced. This announcement sent Tesla’s stock price down.
Finally, the third threat comes from Tesla shareholders. If a court forces him to buy Twitter, it is a safe bet that Musk will use his Tesla shares as collateral for a portion of the purchase price.explains to Quartz, an expert in corporate law.
That’s exactly what the billionaire did by selling $6.9 billion in stock in the manufacturer between August 5 and 9, in anticipation of a possible coercive deal and to avoid an emergency deal.
In the (hopefully unlikely) event that Twitter forced this deal to close *and* some stock partners didn’t come through, it’s important to avoid an emergency sale of Tesla stock.
– Elon Musk August 10, 2022
This kind of sell, though Public Promises in Spring That Musk won’t give up more Tesla shares in the near future may upset some of the company’s shareholders, who don’t want the CEO to be busy elsewhere, or their stock value tied to the social network’s fate.
If these weary investors push Tesla shares further lower, Musk will find himself in disrepair — proportionately, of course. Because as Jennifer Greigel, who specializes in finance and social networking, explains, At worst, it drops a few places on the Forbes list […] And inherit a powerful platform[…] It’s always a win-win situation when you’re that rich.”