The saga continues. Elon Musk got sued for violating his $44 billion deal with Twitter. In that (previously-promised) lawsuit, Twitter asked the Delaware court to order Elon Musk to complete the agreed acquisition.
Elon Musk gets sued by Twitter, as company is looking to force Musk into acquisition
The lawsuit states: “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”.
On top of everything, Twitter’s court filing says that Musk’s violations have: “cast a pall over Twitter and its business”.
So, why did Elon Musk terminate the agreement to buy Twitter? He said that Twitter did not disclose accurate data regarding the number of spam / bot accounts on the platform. It was also said that Musk reached out a number of times for the information. He never got proper info back from Twitter, allegedly.
Musk’s lawyer, Mike Ringler, said in a letter: “He views Twitter’s non-responsiveness as a material breach of the Merger Agreement giving him the right to terminate the Merger Agreement if uncured”.
The whole situation probably won’t be resolved anytime soon, but we’ll see
This matter probably won’t be resolved quickly, though anything is possible. At this point in time, it seems like a trial will follow, unless something changes in the meantime, and the two parties manage to reach an agreement of some sort.
Elon Musk apparently believes that there are too many spam / bot accounts on Twitter. Considering that the company did not provide accurate numbers, at least according to Musk, he cannot know for sure
Twitter probably sees things in a different light. There are a number of possible outcomes here, if the matter goes to trial, and by the looks of it, it will. Elon Musk may yet be forced to complete the transaction, but that’s only one of the possibilities.