Communications analyst Andrew Freedman has a bleak outlook on the likelihood of Musk’s Twitter (TWTR) takeover getting finalized without court intervention, providing details on the mounting troubles for the deal on The Call @ Hedgeye.
“The 54-dollar bid is really high, given where the fundamentals of the business are trending and where the stock would be trading in the absence of the deal,” says Freedman. “At the end of the day he signed a binding contract, and the only way he can really get out of this deal is if the financing dries up.”
Since Musk likely has the equity, the only other likely avenue to take would be a long, drawn-out court battle that would be beneficial for neither party. “Precedent here is not in Elon’s favor… We are going down a path where this ends up in court.”
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