Twitter is suing billionaire Elon Musk for violating an agreement to purchase the social media company for $44 billion and has asked a Chancery Court in the State of Delaware to order the completion of the deal.
Musk offered to buy Twitter at $54.20 per share – well above Twitter’s current share price of around $34.
According to the complaint, Twitter argues that the Tesla and SpaceX CEO apparently believed he – unlike every other party subject to contract law – was free to change his mind, trash the company, disrupt its operation, destroy stockholder value and walk away.
Musk’s lawyers said that he was terminating the deal because Twitter violated the agreement by failing to account accurately for the number of spam accounts on the platform – something Twitter rejects.
Twitter hits back at Musk, says no deal obligations breached:
Managing director of investment company, Wedbush Securities, Dan Ives called the deal a soap opera from the start.
Twitter’s lawsuit accuses Musk of numerous violations of the merger agreement and cites his reasons for walking away, which include claims the social media company fired top executives and about one third of the talent acquisition team, as a pretext that lacked merit.
Ives also believes Twitter has the stronger case to make before the Chancery Court – a specialised forum that handles business disputes.
Twitter filing their lawsuit on a day SpaceX’s latest Starship booster test experienced an explosion at their Starbase facility in Texas and while Musk is engaged in a social media spat with former President Donald Trump; in short Elon Musk has a lot on his plate and is the centre of a lot of high-stakes back and forth on a variety of topics.
But it’s this Twitter lawsuit that could set up one of the biggest showdowns involving one of the world’s most recognizable and outspoken billionaire entrepreneurs and a social media company that has permeated the lives of hundreds of millions around the globe.
Twitter’s first salvo in the lawsuit is that Musk is pulling out of the deal he signed in April because it no longer serves his personal interests.
Twitter sues Elon Musk for violating purchase agreement:
Twitter discusses the implications of Elon Musk’s decision not to buy Twitter anymore: