Many merger and acquisition experts agree that Twitter has the stronger legal argument. Twitter claims in its suit that with financing commitments for the deal still intact, no apparent issues with regulatory approval and cooperation by the company itself, Musk has no standing to walk away from the agreement.

*

But a possible stronger legal argument doesn't necessarily mean Twitter is on strong footing in other ways. Twitter was already struggling to grow its advertising business and user base before Musk got involved. Like other tech companies, Twitter is also trying to cut down on costs amid rampant inflation and fears of a recession.