Elon Musk could pay billions of dollars after terminating the Twitter purchase deal, an expert has warned.
Scott Galloway of New York University said Musk has a low chance of winning the unavoidable legal battle with Twitter after canceling his $44 billion deal on Friday.
In a Pivot Podcast, he said that Musk may be obligated to pay the difference between the $44 billion he offered for Twitter and its value now, which stands at about $28 billion.
Musk faces a $1 billion break fee for walking away from the deal, but with Twitter’s chairman planning extensive legal action, Galloway said that fee was now “moot”.
“He owes shareholders $17 billion here … and the stock’s probably going to crater at Twitter. This guy could be looking at a $20 billion judgment,” Galloway said.
“Anyone with an IQ over 80 who has his ear would have said ‘why are you doing this? This makes no sense.”
Musk’s lawyers argued in a letter to Twitter that the firm had breached its agreement by failing to disclose the accurate number of fake accounts on the social media platform.
