As the six-month-long Elon Musk and Twitter Inc (NYSE:TWTR) saga looked to be nearing its conclusion, all eyes turned to the social media giant as it seeks to reach an agreement to end litigation in Delaware.
The US$44bn, or US$54.20 per share, deal to buy Twitter could be inked as early as next week, according to broker Wedbush Securities, after the world’s richest man changed his mind again and agreed to pay the price he offered in April.
Although, understandably, there is huge distrust between both parties, with the Twitter legal team taking its time and reportedly expected to examine every possibility once the lawsuit is removed.
"The parties have not filed a stipulation to stay this action, nor has a party moved for a stay," commented the Delaware Court of Chancery.
The main thing here would most likely be the condition out of the Musk agreement that the deal closing was pending the receipt of the necessary US$12.5bn debt financing, Wedbush commented.
“The banks are essentially cemented to this Twitter debt deal and we see no way out despite the very tough debt markets today,” it added.
It is highly unlikely this debt situation could fall apart and give Musk a “way out” of the deal with a minimal breakup fee, analysts said.
Wedbush reinforced this, insisting the deal will get “done smoothly” despite some late “poker moves” from the social media company with the Delaware Court case scheduled to begin on 17 October.
The broker reiterated its US$54.20 price target for Twitter – the price at which Musk agreed to buy it – with a ‘neutral’ rating.
Twitter shares were changing hands 1.2% lower in pre-market trading on Thursday at US$50.68.