Elon Musk has finally bought Twitter. The $44 billion purchase wouldn’t have happened without the intervention of a no-nonsense judge in Delaware.
Elon Musk has finally bought Twitter. The $44 billion purchase wouldn’t have happened without the intervention of a no-nonsense judge in Delaware.
Twitter finally has a new boss in Elon Musk. The months-long dispute between the world’s richest man and the board of the micro-blogging site ended on Friday. This would not have happened without a judge on Delaware’s 230-year-old Court of Chancery.
Delaware Court Chancellor Kathleen McCormick is the polar opposite of the mercurial Tesla boss, who has a penchant for chaos. This was evident from his no-nonsense approach during the first hearing of the case. As Musk’s attorney began speaking during the hearing earlier this month, she suddenly cut him off, saying, “Quit the rhetoric and go to the flesh.”
Musk’s legal team proposed a few days ago closing the deal with twitter Agreed to $54.20-per-share, provided the court grants an adjournment and adjourns the trial. Lawyers for the billionaire said they planned to close the deal by the end of the month. In a surprise order, the Delaware Court’s first female chancellor halted the case against the jet-setting billionaire, giving the parties until October 28 to complete the purchase.
A chancery court differs from an ordinary court in that their results are not based solely on common law. The former rules are based on equality and fairness. Courts hear cases either before a judge and a jury or a panel of judges. These courts hear criminal and civil cases.
In a lower court case, the judge and jury decide on the merits of the case based on the letter of the law. In the case of a circuit court, a panel of judges hears the case and decides on the merits of the case.
However, chancery courts focus on fairness and equity. Originally, these courts acted as the “conscience of the king” through their chancellor. He made his way to America as a court with the general power of equality. In a Chancery Court, like the one in Delaware, the law is enforced on a basis of common sense rather than a letter of approach to the law.
The deal between Elon Musk and Twitter would not have happened without Chancellor Kathleen McCormick, a judge on Delaware’s 230-year-old Court of Chancery. , photo credit: AP
It is this aspect of chancery courts that makes it the venue for many merger and acquisition disputes. There are more than 1.8 million businesses registered in Delaware, and nearly two-thirds of Fortune 500 companies are registered in the Mid-Atlantic state. Twitter is registered as a company in Delaware. Businesses seek the guidance of the Court on matters relating to corporate disputes. And it makes the position of chancellor all the more important and powerful.
Chancellor McCormick was nominated in 2021 to become the first woman to lead the court. And he is said to be well versed in trials involving deals where buyers try to walk away. Twitter’s case against Musk landed on the table of Chancellor McCormick, who at his former job as Young Conway Stargate & Taylor, an associate law firm, handled merger-related matters that turned sour in 2008 when the market crashed.
He has taken all his experience and knowledge in this matter. Some experts point to its decision to delay the hearing as a well-intentioned move that pre-empted the Tesla boss from filing any potential appeals.
What he eventually offered to Musk and Twitter was not only a delay in the hearing, but a way out for the world’s richest man and an influential social media platform. To close a seller-friendly deal He signed six months ago.