CNBC’s Jim Cramer unloaded on Elon Musk on Thursday, arguing the billionaire had no choice but to reverse course and buy Twitter after miscalculating his ability to back out of the deal.

Musk proposed buying Twitter this week at the original price of $44 billion, or $54.20 per share. The Tesla CEO’s proposal came just days before Musk and Twitter were set to face off in Delaware Chancery Court – with many legal experts predicting he was likely to lose the case.

When asked if Musk’s offer was an attempt to “atone” for his role in the dispute, Cramer asserted that he likely realized he was set to fight a losing battle in court.

“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.

“Bret Taylor made an impassioned case, the [Twitter] chairman, that there’s nothing here to even argue about, and that’s what happened,” Cramer continued. “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.”

Mediaite earlier covered Cramer’s commentary.

Jim Cramer
Jim Cramer said Elon Musk made a “big tactical mistake.”

As The Post reported, representatives for Musk and Twitter were still negotiating the takeover deal through late Wednesday, with no immediate resolution in sight. Musk was slated to be deposed as part of trial proceedings on Thursday and Friday, though the company was mulling whether to let him delay the appearance.

For now, the trial is still slated to begin on Oct. 17. Sources told The Post that Twitter is unwilling to call off the legal date until it has a finalized agreement with Musk.

Musk tried to back out of the original deal due to concerns about spam bots in Twitter’s user base. Meanwhile, Twitter argued the deal was ironclad and sought a court order requiring Musk to proceed.

Elon Musk
Elon Musk has proposed buying Twitter for $44 billion.
NTB/AFP via Getty Images

Cramer added that he spoke to lawyers who felt Musk was simply trying to wrangle a discount on the original price.

“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.

Cramer isn’t the only CNBC personality to be critical of Musk’s behavior in the legal fight.

In July, CNBC anchor David Faber boldly claimed that Musk could face jail time after backing out of the agreement – a prediction that has not materialized.


Source link

About Author

Tyler Cowan