In a further test of patience for Twitter (NYSE:TWTR), a Delaware judge agreed to a stay order on the trial involving the microblogging platform and its potential buyer, Elon Musk, until October 28. The delay effectively eliminates the possibility of closing the acquisition at the original price of $44 billion quickly.
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For context, Musk faced the ire of Twitter in July when the latter filed a lawsuit after Musk withdrew his proposal to buy the company. The trial date was set to take place in Delaware Chancery Court on October 17. Earlier this week, in a surprise move, Musk agreed to go ahead with the buyout at the original price of $44 billion.
However, on Thursday, the dispute took a new turn when Musk made an appeal to delay the trial and allow him more time to conclude the buyout, much to the pique of Twitter’s legal representatives, who accused him of recalcitrance.
Interestingly, Twitter’s vehement opposition to this request fell on deaf ears as the trial was indeed postponed by Chancellor Kathaleen McCormick. The judge also stated that if both parties fail to conclude the deal by October 28, she will set a trial date for November.
Is Twitter Stock Expected to Rise?
Amid the hogwash that is keeping TWTR stock volatile, Wall Street does not see much room for stock appreciation, at least until the negotiations take a proper direction. The current average price target on Twitter stock stands at $43.13, which indicates a 13% downside risk.
Analysts prefer to stay on the sidelines, with a Hold consensus rating based on two Buys and 18 Holds.
