Also today, Twitter's gearing up for a messy legal fight after Elon Musk pulled out of a takeover deal.
It's official: Elon Musk wants to pull out of the $44 billion deal to buy Twitter. The billionaire claims the social network has violated multiple provisions of their agreement. Tesla's CEO has frequently complained about the number of spam accounts on Twitter — claiming the true figure is higher than what the platform suggests. What's awkward is that the terms of the deal mean that Musk waived certain due diligence rights, and it's very possible that he could be on the hook for a $1 billion fee because of the termination. Twitter has repeatedly said that it's determined to see the deal through, with critics claiming Musk has gotten cold feet because the company's stock has fallen substantially of late.
In a bizarre twist, Musk has spoken out about his decision to pull out… on the site he's no longer buying. He posted a meme that shows four statements — and four pictures of Elon Musk. The first mentions how Twitter initially pushed back on the takeover attempt, with the billionaire looking fairly amused. Next, it alleges that the tech giant refused to disclose how many spam accounts are on the platform. Musk laughs. The third mentions Twitter's threat to commence legal action to ensure the deal goes through. Tesla's CEO is pictured smiling. And last but not least, the meme points out that the social network will now "have to disclose bot info in court" — with Musk seen throwing his head back and laughing hard.
Reports suggest Twitter's hired Wachtell, Lipton, Rosen & Katz to handle this upcoming legal battle — and early this week, a lawsuit will be filed with the Delaware Court of Chancery. Some analysts even say Musk's allegations are "unsubstantiated" — and his claims that Twitter's misleading investors over fake users is merely an attempt to abandon the acquisition without paying the fee. A major motivation for Musk likely relates to the fall in Twitter's stock price — far below the $54.20 a share he'd offered earlier this year. And the latest twist in this drama has caused even more carnage. In pre-market trading on Monday morning, Twitter's share price stood at $34.35 — a fall of 6.7%.
Bitcoin's more likely to tumble to $10,000 than accelerate to $30,000, according to a new poll. According to Bloomberg, 60% of those who responded to a MLIV Pulse poll believe BTC will tumble to new lows first. The remaining 40% think further downside is limited, and that the world's biggest cryptocurrency can regain lost ground in the months ahead. As Bloomberg's report notes, the industry "has been rocked by troubled lenders, collapsed currencies, and an end to the easy money policies of the pandemic." Retail investors were more likely to describe cryptocurrencies as "all garbage" than professional investors.
Big money sponsorship deals with sports teams have dried up as the bear market sets in — but not entirely. OKX has announced that its logo is going to be emblazoned on Manchester City's training kits during the 2022-23 season. It's going to be worn by the men and women first teams, and is set to make its debut later this month. The exchange says it sees a "strong parallel" between its users and training footballers, adding: "What else could embody the highest levels of preparation, perseverance and mental discipline better than Manchester City’s training camp? Now more than ever, in these choppy bear market conditions, it’s important to be as prepared as possible."