CNBC’s David Faber Predicts Elon Musk Could Go to Jail for Bailing on Twitter Purchase

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David Faber shocked his CNBC colleagues by suggesting that Elon Musk could be jailed over the lawsuit he faces from his decision to back out of buying Twitter.

Faber joined Jim Cramer and Carl Quintanilla as they led Squawk on the Street Monday with news that Musk is cancelling his $44 billion deal to buy the social media platform.

Musk has repeatedly expressed concerns that Twitter is being misleading about the number of bots and spam accounts on the platform. The billionaire Tesla CEO has not presented any evidence to support his claims, and some experts have speculated they are merely a pretext for him to back out of a deal he now sees as overpriced.

Twitter chairman Bret Taylor announced the company would take legal action to close the buyout transaction Musk initially agreed to, though the Tesla CEO continues to scoff at any consequences that may result from his attempt to abandon the deal.

Faber zeroed in on Musk’s claims that Twitter is being misleading about the extent of bots and spam accounts on the platform.

Faber said there has been “no evidence presented thus far in any way to enhance” Musk’s accusations, and now Musk will have to produce evidence in court to prove those claims about Twitter’s supposed lack of transparency.

“Even if you were to prove that there were a higher number of bots, you still have to prove that it actually is a material adverse effect,” Faber said.

“I don’t think it is,” Cramer followed up. “He spent a lot of time, and his team has spent a lot of time with management going over very strong periods of open store, meaning that Musk really felt that they had gotten a really good look at it. So that is going to hold against them. I still think the likelihood that they get some sort of price cut is good. Boy, the board is in trouble if they just get that walk away.”

Faber countered there was “no way” Twitter was going to let that happen as they ask the Delaware Court of Chancery to enforce the terms of Musk’s agreement.

Most of the people that you speak with — or at least, certainly that I have — believe that will be the case. Then the question is: you are forcing Mr. Musk to buy the company, does he actually agree to do it? There is this argument being said lately that, well, maybe he will not comply with that. Then we would have a situation where they could put him in jail.

Quintanilla found the idea of Musk going to jail “funny,” but Faber maintained “that’s where we could end up.”

Cramer also seemed astonished by the possibility, tweeting this shortly after the conversation ended:

Watch above, via CNBC.
 

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