in ,

Twitter sues Elon Musk to back out of a $44 billion acquisition

Twitter vs Elon Musk? It’s What’s Happening!

Twitter sues Elon Musk to back out of a $44 billion acquisition

Twitter vs. Elon Musk is heading to court. On Tuesday, the social media company filed a lawsuit against the world’s richest man, alleging that he is refusing to “honour his obligations” under their agreement and attempting to force him to complete the transaction.

Musk is attempting to back out of the $44 billion acquisition deal announced on April 25th, claiming Twitter has failed to meet his requests for information about bot activity and spam on the platform.

“Twitter brings this action to enjoin Musk from further breaches, to compel Musk to fulfil his legal obligations, and to compel the merger to be consummated upon satisfaction of the few outstanding conditions,” Twitter writes in the lawsuit, which was filed in the Delaware Court of Chancery, where the company is incorporated. Twitter spokesperson Catherine Hill declined to comment beyond the legal filing, while Twitter board chairman Bret Taylor mentioned the filing in a brief tweet.

Musk responded with a tweet of his own, saying, “Oh, the irony, lol.”

Source: The Verge

According to the lawsuit, this is where Musk’s claim about Twitter having a spam bot problem came into play. Despite his concerns, the lawsuit claims that Musk did not inquire about Twitter’s spam estimates before the agreement was signed. According to the lawsuit, “he even sweetened his offer” by removing a diligence condition from the agreement that would have given him access to non-public information about the company.

Twitter CEO Parag Agrawal has written threads about how the company estimates its daily active users, and the company recently told reporters that it blocks 1 million spam accounts every day. Twitter cited many of Musk’s own tweets in its lawsuit, including his public call for an SEC investigation and memes Musk tweeted over the weekend.

According to a memo sent to employees on Tuesday and described to The Verge, Twitter is attempting to have its case heard in Delaware court in September. To take on Musk in court, Twitter has retained the legal services of Wachtell, Lipton, Rosen & Katz, a powerhouse firm with deep ties to the Delaware Court of Chancery and a track record of hearing high-stakes corporate disputes.

A complete report about Twitter vs Elon Musk complaint is here, contributed by The Verge (Vox Media)

Read More About Technology

Written by Hammad Khalid

Leave a Reply

Exit mobile version