Friday September 30, 2022

Twitter sues Elon Musk over his attempt to cancel a $44 billion buyout deal

Twitter is suing Elon Musk in an attempt to force him to complete his $44 million acquisition of SpaceX and Tesla. According to the New York Times, Twitter filed a complaint Tuesday at the Chancery Court in Delaware alleging that Musk violated his agreement to buy the platform. Musk had announced in April that he would buy Twitter at $54.20 per share. Twitter accepted the offer less than two weeks later. The two have been involved in a heated dispute over fake accounts on Twitter since then. The dispute began in May, when Musk stated that the deal was “temporarily suspended” while his team verified that bots comprised less than five percent of Twitter’s total userbase, as the company has repeatedly claimed. Musk threatened to renegotiate the agreement less than a month later. He accused Twitter of violating their agreement by refusing sufficient information about the bot problem. Twitter responded by giving Musk full access its “firehose” of internal data. This was a move that did not appease the billionaire, who had told the Securities and Exchange Commission on July 8th that he wanted to end the takeover because of “false and misleading statements” made by Twitter. This brings us to today. “Having staged a public spectacle to place Twitter in play, and having proposed, then signed, a seller-friendly merge agreement, Musk apparently believes that he, unlike any other party subject to Delaware contractual law, is free to change, trash the company’s operations, destroy stockholder values, and walk away,” Twitter stated in its filing. Twitter claims that Musk did not ask for estimates from the company before he made his offer. According to the company’s legal briefing, Musk made his offer without asking Twitter for any representation regarding its estimates of spam and false accounts. Musk even sweetened his offer by withdrawing his prior diligence condition. Musk may respond to the lawsuit by rescinding his prior diligence condition. Developing… All products recommended by Engadget were selected by our editorial staff, independent from our parent company. Some stories may contain affiliate links. We may earn an affiliate commission if you purchase something through one these links.

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