Social media giant Twitter is suing Elon Musk over his $44 billion takeover deal which he is now walking away from.
The billionaire decided to step away from his plan to buy Twitter for $44bn, citing problems with spam bots. He claims he was not given information about fake accounts/bots on the platform. This prompted the company to sue him in an attempt to force him into taking over.
The lawsuit says “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 Lawsuit
Twitter asked a court in Delaware to order Musk to buy the company at the original price of $54.20 per share. He has responded, saying “Oh the irony lol”.
The lawsuit said Mr Musk, known for SpaceX and Tesla, backed out of the deal because it “no longer serves his personal interests”. It also says Twitter’s share prices have fallen as a result of his actions.
Musk announced he was pulling out of the deal on Friday last week. Twitter’s share price has fallen by over 8% recently, and this change of heart is likely to cause that number to drop even more.
But Musk has already entered into an agreement with Twitter. That agreement is legally binding, so it may be an uphill battle for the billionaire if he wants to step away from the deal, which he clearly does.
Twitter claims it is “committed to closing the transaction on the price and terms agreed upon with Mr Musk”. So we’ll just have to wait and see what transpires next.
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