The Twitter-Musk deal is arguably the talk of the town and an amusing one too. Since the official announcement of the deal, we have seen various developments in this regard, eventually boiling down to Musk’s decision of calling the deal off. As a reply to this, Twitter is now suing Elon Musk. Here’s all you need to know.
Twitter Wants Musk to Buy It!
After Elon Musk told Twitter that he doesn’t want to buy Twitter last week, Twitter is now taking harsh steps and has filed a lawsuit in the Delaware Chancery Court, which is simply to persuade Musk into buying it at the decided price of $54.20 per share totaling to $44 billion.
The microblogging site also accuses Musk of “material contractual breaches,” which has a long list and wants him to avoid yet another breach. It is also suggested that ever since the deal was signed, the Tesla owner has “repeatedly disparaged Twitter and the deal,” thus, troubling the Twitter stocks. Twitter’s stock price currently sits at $34.06, which is way less than what was when the deal was initially announced.
The lawsuit reads, “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.“
Twitter believes that the reason Musk wants out is the falling Tesla stocks and the loss of his personal interests. Musk, on the other hand, has been claiming that Twitter hasn’t been open about the spam bots on the platform and how this is hindering the privacy of the users. Back in May, Elon Musk claimed that he won’t proceed with the Twitter deal unless the spam bot issue is resolved.
It is also suggested that Twitter has “abided by its covenants, and no Company Material Adverse Effect has occurred or is reasonably likely to occur.“
Following the lawsuit, Musk (as he usually does), took to Twitter and shared a sarcastic tweet. While it isn’t directly pointed to the lawsuit, we know Musk is talking about it since it is indeed ironic how Twitter now wants Musk to buy it when initially it was against it!
All in all, this is quite a messy situation for both Twitter and Elon Musk and it remains to be seen what turns and twists we may get to witness as things proceed. We will keep you updated on all of this. So, stay tuned, and don’t forget to share your thoughts on this latest development in the comments below.