BREAKING UPDATE: Elon Musk has won his stay of the trial from the judge so that he and Twitter can move ahead with closing the deal:

Here’s the ruling by the judge:

Defendants and Counterclaim-Plaintiffs Elon R. Musk, X Holdings I, Inc., and X Holdings II, Inc. (collectively, “Defendants”) have agreed to close on the Agreement and Plan of Merger dated April 25, 2022, and they have moved to stay this action in light of their agreement. Defendants have stated that “the closing is expected on or around October 28, 2022.”

Plaintiff Twitter, Inc. opposes the motion on the basis that Defendants’ agreement will not ensure that the transaction closes fast enough.

This action is stayed until 5 p.m. on October 28, 2022, to permit the parties to close on the transaction. If the transaction does not close by 5 p.m. on October 28, 2022, the parties are instructed to contact me by email that evening to obtain November 2022 trial dates.

So the deal should close by the end of the month and Musk can get on with fixing the mess he just bought.


For the short backstory on this, see the original post below:

In their latest court filing, Elon Musk’s lawyers say that Twitter will not agree to go ahead and proceed with closing the deal.

Instead, they argue, Twitter wants to put the deal at risk by proceeding with their litigation.

From the court filing:

Twitter will not take yes for an answer. Astonishingly, they have insisted on proceeding with this litigation, recklessly putting the deal at risk and gambling with their stockholders’ interests. Proceeding toward trial is not only an enormous waste of party and judicial resources, it will undermine the ability of the parties to close the transaction. Failing to stay the litigation would send a signal to the market that—despite Defendants’ commitment to perform their obligations under the Merger Agreement and Equity Commitment Letter—Twitter is demanding that the Court impede the deal moving forward. Instead of allowing the parties to turn their focus to securing the Debt Financing necessary to consummate the transaction and preparing for a transition of the business, the parties will instead remain distracted by completing discovery and an unnecessary trial. In effect, a trial would keep the merger transaction in limbo for longer, casting an unnecessary cloud of uncertainty over the company.

Musk wants the judge to stay the current litigation pending the receipt of financing so they can move ahead and close the deal by the end of this month, October 28th.

But they aruge that if Twitter gets their way, then the deal won’t close for months upon months, if not longer.

This may seem confusing, but from what I understand Twitter wants to make sure that Musk secures the debt financing and since he hasn’t moved to do that yet, they don’t want to let go of the litigation. Musk is saying their concern is a non issue at this point because there’s no way the banks won’t back the deal.

Or to put it another way…

It sounds like the deal will go forward, it just depends on how long it will take to close the deal of the trial is allowed to continue.

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