Azerbaijan news

Elon Musk’s $ 1 billion fine will not be enough if he refuses to buy Twitter

A few days ago Elon Musk Twitterhad announced the suspension of the procurement process. The main reason social fake on the network and Spam user accounts are used to determine what percentage of total user accounts they have. Musk’s announcement, in turn, has caused serious concern among Twitter shareholders. So. that, After Musk’s statement social market value of the network 9 billion dollars fell down. According to experts, if Musk refuses to take Twitter, he will 1 billion dollars the only way out is to pay a fine way will not. So. that, At the request of the injured party, this amount will include additional damages to be determined by the court. According to the information provided by lawyers 1 billion dollars Penalties in the amount of AZN 1 million shall be paid only by the party initiating the termination of the contract in the presence of external factors.

External factors include, for example, claims related to the contract by regulators and or there may be problems with contract financing. In the event of significant falsification of the information provided by the other party during the negotiations, the first party may refuse to enter into a contract without any problems. According to experts, the decline in the value of Twitter shares was attributed to Musk social to refuse to buy the network and just paying a $ 1 billion fine is not a compelling reason to help close the issue. However, according to some analysts, Musk may try to reduce the selling price of the social network by using the suspension of the process of buying Twitter. Although he himself has not raised concerns about Twitter shares, his partners involved in the matter have told him snowcan exert pressure.

Musk himself noted that, he still intends to take to Twitter. That’s it according to and the possibility of terminating the contract on its own initiative is possible only if some conditions change. For example if TeslaMusk may refuse to buy Twitter if the damage caused by the fall in the value of its shares is higher than the costs associated with the breach of contract. Tesla shares him here according to It was noted that, Some time ago, Musk had to sell a stake in Tesla to finance a deal to buy Twitter. Of course that, Refusal to buy Twitter, in turn, will deal a major blow to Musk’s reputation and the level of reliability of Musk will be lower in the event of the acquisition of any company in the future.



Azerbaijan news

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