“Mad Money” host Jim Cramer is speaking out about the Elon Musk Twitter deal. Earlier this week, Musk reportedly submitted a new proposal to buy the platform for $44 billion after backing out of a deal to purchase the company several months earlier.
Musk contended that Twitter undercounted the number of fake bot accounts on the platform, Twitter responded by accusing Musk of acting in bad faith and backing out of the deal because the markets were turning.
With a case in Delaware Chancery Court pending, Musk’s deposition scheduled for Thursday and Friday in Austin, Texas has been placed on hold.
“The answer is the Chancery is just going to hold him to everything and he realizes that he made a big tactical mistake in not understanding the Delaware law favored the incumbent,” Cramer said via Mediate.
“It wasn’t like he suddenly realized ‘well, holy cow, I really want the asset.’ He was going to have to pay for the asset no matter what,” he added.
According to the New York Post, representatives for Musk and Twitter were still negotiating the takeover deal through late Wednesday, with no immediate resolution in sight.
“People I know who practice in that court thought Musk was making an ill-advised campaign to get the stock price lower and that there was no reason whatsoever for the people who run Twitter to say ‘you made a deal, now you can’t break it,’” Cramer said.
A trial scheduled for Oct. 17 will reportedly begin.
