Are Musk and Twitter Back On? Here’s What We Know.

Author: Yuvi October 5, 2022

 Are Musk and Twitter Back On?  Here's What We Know.


The law firms representing Musk and Twitter on deal work and litigation stand to earn hundreds of millions for their months of labor, according to estimates from competitors and colleagues familiar with the matter. The firms declined to comment.

What Happened to Elon Musk’s Twitter Deal

Card 1 of 9

A blockbuster deal. In April, Elon Musk made an unsolicited bid worth more than $40 billion for the social network, saying he wanted to make Twitter a private company and allow people to speak more freely on the service.

Shareholders give approval on Sept. 13, as the start of the trial approached, Twitter’s shareholders voted to approve the company’s deal with Mr. Musk, even as it remains uncertain whether the acquisition will be completed. The company said a preliminary tally of shareholder votes determined support for the deal, but it did not immediately release a vote count.

A surprise move. On Oct. 4, Mr. Musk proposed a deal to acquire Twitter for $44 billion, the price he agreed to pay for the company in April. An agreement at the original price, which would be a victory for Twitter, could bring to an end the acrimonious legal fight between the billionaire and the social media company.

The deal was always likely to be a lawyer’s dream, fee-wise. While Musk’s bid came together relatively quickly this spring, the talks rapidly became mired in lengthy legal wrangling, leading to many billable hours. “There is a lot of discovery to do,” Peter Glennon, a legal expert, told The American Lawyer in August. “We aren’t just looking at emails. We are looking at Slacks, Teams, texts, all of it.” (John Coffee, a Columbia law professor, previously estimated that legal fees could have run to $1 billion.)

The key players:

Musk is represented by Skadden on the deal side and by Skadden and Quinn Emanuel in litigation. Top partners at the firms bill about $2,000 an hour. Lawyers estimated to DealBook that the firms could be charging about $30,000 to $40,000 an hour, or $5 million to $8 million a month. That means Musk could have paid about $50 million, plus perhaps another $50 million in the run-up to litigation.

Twitter relied on Wilson Sonsini and Simpson Thacher, where top partners also most likely bill about $2,000 an hour, for deal work. And for litigation it’s primarily relying on Wachtell, the blue-chip firm known in legal circles for its bespoke (and opaque) pricing, including hourly billing, flat fees and contingency deals. Depending on its arrangements, Wachtell could bring in $100 million to $200 million, the lawyers estimate.

Between those firms alone, the Twitter case has probably already generated about $150 million to $300 million in fees. But then add in all of the other lawyers involved in litigation, depositions, the deal and more. And that figure could grow if this actually goes to trial, or otherwise goes awry.

Ray Dalio, the outspoken and oddly earnest hedge fund manager whose profile rose after he predicted the 2008 financial crisis, is relinquishing control of Bridgewater Associates, the firm he founded out of his two-bedroom apartment in 1975. In a long transition planned, the The co-CEOs, Nir Bar Dea and Mark Bertolini, will run Bridgewater, now the world’s largest hedge fund, with $150 billion in managed assets.

Dalio ushered in the era of enormous hedge funds. By the time Bridgewater started its signature Pure Alpha fund in 1991, most rivals were relatively small, focused on the stock market and managing the money of the ultrarich. Dalio, whose expertise was in currency trading, sought business from pension funds, which had huge piles of money to invest and were looking for exposure outside the stock market.

5 October, 2022, 5:18 pm

News Cinema on twitter News Cinema on facebook

Wednesday, 5th October 2022

More Stories
England vs. Senegal: A Heavyweight Faces a Big Test
Matt Hancock says he was ridiculed in Westminster for his faith in the Covid vaccine
Georgia, Michigan, TCU and Ohio State Are Playoff Semifinalists
Identical twins are handed $1.5M in damages after being falsely accused of cheating in medical exam
Matt Hancock accuses Michelle Mone of ‘wild accusations’ to try to help firm win Covid contract
Bigg Boss 16 Day 64 updates: Shekhar Suman breaks down in front of Bigg Boss dressed as MC Stan, Shiv, Priyanka and Archana.
Matt Hancock says ‘Boris Johnson’s dithering sparked winter lockdown’
The Prince of Wales shares behind the scenes snaps as he prepares for the Earthshot Prize awards
Prince William to push back any ‘wild claims’ in Harry and Meghan’s Netflix documentary
Meghan Markle’s mother Doria Ragland could make her TV debut in the Sussexes Netflix documentary
John Corry, Former Times Reporter and TV Critic, Dies at 89
PAK vs ENG 1st Test Day 4: Pakistan need 263 runs to win, 8 wickets still left
You can’t help falling in love with Thing in Netflix’s Addams Family spinoff, dares JACI STEPHEN
‘The Goonies’ home in Oregon sold to super-fan of the film after being listed at $1.63 million
2 killed, 7 wounded in rare anti-government protest in Syria
Jacinta Price accuses Albanese of bullying, gaslighting over Indigenous Voice to Parliament
Dramatic moment father saves his two-year-old daughter after she was ambushed by a coyote
Brett Henson: Man who allegedly stole a taxi from Sydney’s CBD is revealed to be Mirvac executive
France vs. Poland: Defending Champs Are Ready To Dig In
Angelina Jolie slams Brad Pitt over winery scandal, calling his allegations ‘frivolous, malicious’
Shocking moment man pulls baseball bat from his sweatpants and viciously beats man in NYC
Idaho victim’s parents cryptically claim ‘means of death’ between two of the girls ‘don’t match’
Shweta Tiwari’s daughter Balak sets hearts aflutter in black bangle-skirt set, WATCH
North Carolina Power Outages May Stem From Criminal Act, Officials Say
Angelina Jolie brands ex-husband Brad Pitt’s legal battle over winery ‘malicious’ and ‘frivolous’
ENG vs Senegal FIFA World Cup 2022 Live Streaming: How to Watch ENG vs SEN & Football World Cup Match Free Online & on TV in India?
Amid Churning Oil Market, OPEC and Russia Leave Production Unchanged
Farah Khan says we were curious if Malaika Arora could pull off ‘Saiyaan Saiyaan’.
‘I felt closer to my art,’ says Bapil Khan in a meeting with father Irrfan’s mentor.
WORLD CUP 2022 LIVE: England prepare for last 16 clash with Senegal
What do guys think when they flirt with you?
A Strike, Averted
France vs Poland – World Cup 2022: Live score, team news and updates in last-16 clash
Daughter Nysa stopped handling Devgan’s Instagram account due to Kajol’s dialogue skills
The Week in Business: Upheaval in China
Rashami Desai’s bold, killer look in a sexy black leather dress elevates the sass, watch
Manoj Bajpayee wraps up shooting for his upcoming courtroom drama- see pics
Brits expected to sink 15 MILLION pints as Three Lions take on Senegal tonight
Apoorva Agnihotri-Shilpa Sakhlani Welcome Baby Girl After 18 Years Of Marriage, Name Her Ishani- See Pic
England fans in Doha warm up for World Cup clash as Senegal sing OWN version of It’s Coming Home
Shehnaz Gill Shows Hotness With MC Square In ‘Ghani Siani’ Song Teaser- Watch
He’s the Bad Boy of Chess. But did he cheat?