Musk's legal jeopardy lifts Twitter's stock

As the market realizes things like Twitter never lied to Elon Musk, Musk waived his rights to due diligence, and courts rarely let people out of contracts with a really good reason, Twitter's price per share has picked up. The $1B breakup fee is perhaps the least of Musk's worries.


Twitter stock has emerged from the depths, rallying 6% after it sued Elon Musk for bailing on his $44 billion deal to buy the company.

The lawsuit filed yesterday in Delaware Chancery Court, beyond being a fun read, shows the company is going in "with an iron fist and a clear upper hand," Wedbush Securities big tech analyst Daniel Ives tells Deadline. He's been following the Twitter-Musk saga closely and anticipates a Game of Thrones-like battle but one that could well go Twitter's way. The rising stock price reflects Wall Street starting to build in punitive damages or a settlement well north of the $1 billion breakup fee, or possibly the original sale. The latter, however, might test the court's enforcement power.