Twitter Sues Elon Musk For Allegedly Violating $44B Acquisition Deal
- Twitter has sued Elon Musk for allegedly violating the $44 billion acquisition deal
- Musk ridiculed the social media platform for its decision to file a lawsuit
American communications company Twitter has sued Tesla CEO and the richest man on the planet, Elon Musk, for allegedly breaching the $44 billion agreement.
The Tesla Motors CEO did not delay in reacting to the lawsuit filed against him and took the matter to the microblogging site with a simple tweet, as seen below.
Although he did not specifically mention the lawsuit in his tweet, it was clear that he was pointing to it given that Twitter reportedly did not even want to finalize the deal back in April.
Notably, on Tuesday, Twitter filed a lawsuit in Delaware’s Court of Chancery, accusing Musk of hypocrisy.
“Twitter brings this action to enjoin Musk from further breaches, to compel Musk to fulfill his legal obligations, and to compel consummation of the merger upon satisfaction of the few outstanding condition,”the lawsuit stated
With its most recent lawsuit, Twitter hopes to hold Musk to his agreement to pay $54.20 per share for the firm, which might lead to a protracted legal struggle.
Twitter said that Musk tried to back out of the agreement, which needed a “material adverse effect” or breach of contract. Notably, law firm M&A powerhouse Wachtell, Lipton, Rosen & Katz is representing the social media platform.
“Musk had to try to conjure one of those.”the lawsuit stated.
Last week, Musk decided to back out on his deal to buy Twitter citing that Twitter has not compiled with contractual obligations. As per the merger agreement signed on April 26 at $54.20 per share in a transaction valued at $44 billion, Twitter was supposed to provide the Twitter CEO with all the data he needed for business purposes related to the transaction.
The billionaire particularly wanted details related to prevailing spam bots and accounts across Twitter. However, he put the deal on hold in May to review the veracity of Twitter’s claim that less than 5% of the accounts on the platform were bots. Moreover, in June, he openly threatened to walk away and to call off Twitter acquisition for not providing the data he requested on fake accounts.
Musk ridiculed the decision to initiate a legal battle.
They said I couldn’t buy Twitter. Then they wouldn’t disclose any bot information. Now they want to force me to buy Twitter in court. Now they have to disclose the information in court,”Musk ridiculed Twitter by posting four images of him laughing.