Tesla’s founder Elon Musk renege his deal with twitter.
Another chapter in the Twitter history and Elon Musk. After notifying the company he was backing out of his agreement to acquire the social network on July 8, 2022, Twitter will now go to court to attempt to force Musk to complete the $44 billion purchase. The grounds for the lawsuit stand on Twitter’s claim that they provided the billionaire with all of the information requested regarding the volume of phony accounts on the platform, a major sticking point for Musk when it came to the acquisition.
The company has claimed that only 5% of the monetizable daily active users are spam accounts, while Musk says he was never given accurate information when it came to this assertion. The legal battle is expected to take place in a Delaware court, where Twitter will seek to obligate Musk to complete the purchase at $54.20 per share, the original agreement proposed by the Space-X CEO back in late April 2022.
Twitter’s reaction to Elon Musk
In response to a letter from Elon Musk’s attorney on 8 July 2022, Twitter claimed that the attempted cancellation of the deal agreed upon by the two parties was “invalid and wrongful”, according to the company’s legal team.
In addition, the letter said “Having mounted a public spectacle to put Twitter in play, and having proposed and then signed a seller-friendly merger agreement, [Mr.] Elon Musk apparently believes that he – unlike every other party subject to Delaware contract law – is free to change his mind, trash the company, disrupt its operations, destroy stockholder value, and walk away.”
Twitter’s legal team went on to say that backing out of the previously agreed upon purchase came in conflict with Musk’s personal interests, something that the company believes will not hold up in the scrutiny of the court.
“In April 2022, Elon Musk entered into a binding merger agreement with Twitter, promising to use his best efforts to get the deal done,” the letter said. “Now, less than three months later, Musk refuses to honor his obligations to Twitter and its stockholders because the deal he signed no longer serves his personal interests.”