Elon Musk surprised everyone when he again offered to buy Twitter for his original offer, after trying to back out of a deal he proposed earlier this year. More surprising is the timing of Musk’s second proposal, especially given Musk’s accusations against Twitter of falsifying data about fake accounts and misrepresenting the actual number of daily active users.

Professor Robert Miller, who holds a key position in the department of corporate finance and law at the University of Iowa College of Law, believes that Musk and his team could understand that the case against Twitter is very weak and, in all likelihood, if the trial continues to a verdict, Musk loses.

Musk initially tried to get out of the deal, arguing that Twitter lied in its estimate that less than 5 percent of daily active users were spam or fake. But there doesn’t appear to be any hard evidence for his claims, and with the scheduled trial less than two weeks away, Miller says Musk and his lawyers may have finally realized that his case can’t be won in court.

Musk’s offer to buy Twitter again effectively conditional. In a letter he wrote on Twitter days before his ouster, Musk offered to complete the deal “provided the Delaware Court of Chancery immediately dismisses the case and stays the lawsuit and all other related proceedings pending such closure or further resolution. court”.

As Twitter and Musk will pursue the suspension, Twitter has the option of resuming the trial period, if Musk tries to back out of the deal again.

“If Twitter was involved in a giant scam with mDAU or monetized Daily Active users, if they really knew there was a better way to measure fake accounts than the process they used, but they chose to use this one anyway because it gave the numbers they liked, and if Musk could prove it, he’d be home free and not even have to pay $1 billion for the merger breakup,” Miller said in an interview.

Another reason Musk is seriously considering going back on the original deal is that he might not want to continue the deposition scheduled for this week. “I suspect, based on what little we’ve seen since the revelations, that perhaps when Elon is deposed this week, there will be some very embarrassing questions about text messages and so on, and what he said to whom and when ” Miller said.

Explanation_ The real reason why Elon Musk changed his mind and is now ready to buy Twitter again (1)

There’s one final reason Musk is considering a deal. The court in which the trial is pending, ie. a Delaware court, four times since 2001 forced buyers who reluctantly entered into merger agreements. The last two of these cases were in 2021. In addition, the judge did not give so many concessions to Ilona’s team. They filed several requests for an unreasonable amount of data, and the judge ruled that much of what they were asking for was unnecessary and indeed confidential.

In the event that Musk is forced to make an acquisition, he would buy Twitter at a price that would not reflect his actual stock value. Twitter’s stock price has plummeted since news of the lawsuit broke. By the time the trial ended and the verdict was read, it would have been significantly less than it was when Musk originally made the offer.