Twitter Sues Elon Musk For Backing Down From $44 Billion Deal
Twitter is suing Elon Musk for backing down from the $44 billion deal to buy the platform which he announced he was doing on Friday.
The reason Musk gave is that Twitter would not reveal how many fake and spam accounts made up its userbase, but Twitter is pushing to keep the deal going. It has taken Musk to a Delaware court to order him into moving forward with the acquisition (as reported by the BBC).
"Having mounted a public spectacle to put Twitter in play and having proposed and then signed a seller-friendly merger agreement, 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," the lawsuit stated.
However, Musk claims that it was a long play to get Twitter to reveal its bot numbers in court. He did so through a meme on Twitter as pictured above but this mostly drew backlash. When Twitter chairman Bret Taylor tweeted that they wanted "to hold Elon Musk accountable to his contractual obligations," Musk also responded with a tweet, "Oh the irony lol."
While he claims that backing down was a ploy to find out the bot count, the lawsuit claims otherwise, saying that he did so because it "no longer serves his personal interests." It continued, "The value of Mr Musk's stake in Tesla, the anchor of his personal wealth, has declined by more than $100 [billion] from its November 2021 peak. So Musk wants out. Rather than bear the cost of the market downturn, as the merger agreement requires, Musk wants to shift it to Twitter's stockholders."
Twitter is now pushing for Elon Musk to uphold his end of the deal, paying out $54.20 per Twitter share. He initially put the deal on hold in May earlier this year to confirm the number of fake accounts on the platform before pulling out entirely last week.
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