The Musk–Twitter Fiasco

Abstract

Twitter is suing tech billionaire and Tesla CEO Elon Musk for backing out of his deal to purchase the company. Musk chose to end the agreement on the grounds that Twitter was not honest about the number of bot (fake) accounts on the platform. However, Musk signed a binding agreement whereby he will be legally forced to buy the company if he pulls out of the deal. This prompted Twitter to file a lawsuit, alleging a breach of contract. This case attempts to understand the inherent risks of negotiating in bad faith and who will likely benefit in the end: Musk or Twitter.

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