Simply while you thought that the Elon Musk Twitter takeover deal was all accomplished and dusted, yet one more potential loophole has been uncovered nonetheless lurking within the combine.

In line with a brand new report from Insider, a lot of Musk’s fairness companions, who agreed to again Musk’s authentic $44 billion provide for the corporate, at the moment are looking for to exit the deal, moderately than paying their share of the deal worth.

As per investor Andrea Walne from Manhattan Enterprise Companions:

“Everybody’s making an attempt to get out of it, nobody thinks the corporate must be valued at $44 billion.”

And he or she’s in all probability proper. Given Musk’s repeated public trashing of the company, adopted by his personal efforts to wriggle out of the deal (which may nonetheless see Twitter take Musk to courtroom), Musk is now doubtlessly overpaying for an organization that he himself has basically tanked the worth of.

Twitter’s present market cap is $38.52 billion, however some analysts have it a lot decrease than that, even down within the $10-$12 billion vary.

As he’s sought to exit the Twitter deal, Musk has made or amplified vital claims across the platform’s bot issues, employees and board points, safety flaws and way more.

That would nicely imply that Twitter isn’t well worth the $44 billion that Musk is scheduled to pay – and with no clear plan for a way he’s going to re-build the app’s status, and get many extra individuals tweeting, you may think about that a lot of his fairness companions are re-checking their math, and questioning whether or not there’s any method that they could be capable of exit the method.

Which, there really might not be.

In line with Insider:

“Musk’s fairness co-investors are obligated to supply the funds within the quantities promised, topic to basically the identical circumstances below which Musk himself is obligated to fund the Twitter acquisition. Nonetheless, the dedication letters the co-investors signed enable Musk, in his discretion, to cut back the investor’s obligation.”

So Musk can allow them to off the hook, even fully if he needs. However would he try this?

The underside line is that there’s a situation the place Musk is compelled to let his buyers out of the deal, which might then go away him brief in his funding for his takeover bid.

Which may nonetheless see Musk get out of paying up. Elon would nonetheless must pay the much-discussed $1 billion break-up payment, which might be a stable comfort prize for the Twitter people left to pick-up the items.

However there may be nonetheless a chance that Elon Musk may get out of his $44 billion Twitter bid, if he needs to go that route.

In response to Insider’s report, Musk’s lawyer Alex Spiro, mentioned that the overwhelming majority of Musk’s fairness buyers have been spoken to and are ‘all in’.

So it could simply be one other small hiccup. Or possibly, we’re not accomplished with the drama simply but.