CNBC’s Jim Cramer unloaded on Elon Musk on Thursday, arguing the billionaire had no alternative 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 unique price of $44 billion, or $54.20 per share. The Tesla CEO’s proposal got here just days before Musk and Twitter were set to face off in Delaware Chancery Court – with many legal experts predicting he was more likely to lose the case.
When asked if Musk’s offer was an try to “atone” for his role within the dispute, Cramer asserted that he likely realized he was set to fight a losing battle in court.
“The reply is the Chancery is just going to carry him to the whole lot and he realizes that he made a giant 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 need the asset.’ He was going to need to pay for the asset irrespective of what.”
Mediaite earlier covered Cramer’s commentary.
Jim Cramer said Elon Musk made a “big tactical mistake.”FilmMagic
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 a part of trial proceedings on Thursday and Friday, though the corporate was mulling whether to let him delay the looks.
For now, the trial remains to be slated to start 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 unique deal because of 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 has proposed buying Twitter for $44 billion.NTB/AFP via Getty Images
Cramer added that he spoke to lawyers who felt Musk was simply attempting to wrangle a reduction on the unique price.
“People I do 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 in any way for the individuals who run Twitter to say ‘you made a deal, now you may’t break it,’” Cramer said.
Cramer isn’t the one CNBC personality to be critical of Musk’s behavior within 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.