CNBC Thinks Elon Musk Could Go To Jail Over Twitter Deal

A CNBC analyst thinks Elon Musk might end up in jail after terminating a deal to acquire Twitter, Inc.

Sure ... 

Monday, David Faber warned Musk that he better take seriously a threat from Twitter chairman Bret Taylor who says he will take legal action against Musk for backing out of the deal.

Musk announced on Friday that he is terminating the deal after accusing the company of misreporting the number of fake/spam accounts on the service. Musk claims the number is well over the 5 percent that Twitter reports and could be as high as 20 percent.

Faber argues this claim is unsubstantiated and is thereby sinking the perceived value of Twitter. As a result, Faber concludes there's "no way" the board will let Musk walk away with only a $1 billion "breakup fee."

He explains:

The hosts on the desk giggled at the notion Musk could end up in jail for breaking the deal, but Faber maintained it's a possibility.

"That's where we could end up," Faber countered.

Doubt it.

Nonetheless, a senior Mergers and Acquisitions lawyer familiar with the matter told CNBC that Twitter could sue Musk for billions of dollars in damages if his reason for torpedoing the deal is that he feels like he simply "overpaid."

The lawyer says:

Ironically a lawsuit could still lead to Musk acquiring the company for a lower price, which some analysts say is his preferred outcome.

For reference, Tiffany & Co. sued a French luxury goods conglomerate known as LVMH in 2020 for trying to back out of its agreed-upon deal. Ultimately, the two sides settled with Tiffany agreeing to lower its sale price from $16.2 billion to roughly $15.8 billion.

Maybe Musk really is playing 3‑D chess, after all.

Either way, I'll take the odds that Musk does not end up behind bars in an orange suit.



























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Bobby Burack is a writer for OutKick where he reports and analyzes the latest topics in media, culture, sports, and politics.. Burack has become a prominent voice in media and has been featured on several shows across OutKick and industry related podcasts and radio stations.