Unless Musk backs down or a settlement is reached, the dispute appears almost certain to end up in court. Following Musk's announcement that he wanted to exit the deal, Twitter board chair Bret Taylor said in a tweet Friday that the board is "committed to closing the transaction on the price and terms agreed upon with Mr. Musk and plans to pursue legal action to enforce the merger agreement."

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"We are confident we will prevail in the Delaware Court of Chancery," Taylor added. It does not appear that a formal suit has yet been filed.

Meanwhile, Twitter (TWTR) stock tanked on the news of the dispute, closing down more than 11% on Monday — nearly 40% below Musk's deal price, suggesting deep skepticism about the deal going through. Many analysts have suggested that Musk may be trying to use the bot issue as a pretext to get out of a deal that appears overpriced in light of the recent market downturn. Tesla (TSLA) shares, which Musk is planning to use in part to finance the deal, have also fallen in recent weeks.