Twitter Loses $3 Billion Value as Musk Battle Looms

The transcript discusses the legal battle between Elon Musk and Twitter over a merger agreement. Musk claims Twitter withheld information about spam bots, which he argues materially affects the deal's value. Twitter plans to take Musk to court in Delaware, but an out-of-court settlement is possible. The case hinges on proving a material adverse effect, a challenging task with few precedents. The outcome could involve a lower offer or another bidder. The trial will likely reveal more about Twitter's bot issue.

What challenges does Twitter face in the ongoing legal proceedings?

How does Musk's argument about spam bots relate to the material adverse effect argument?