Tesla CEO Elon Musk has called on his friend and former Twitter CEO Jack Dorsey as part of his effort to back out of his $44 billion US deal to acquire the company Dorsey helped found, according to court filings. documents.
Twitter and Musk are headed to an Oct. 17 trial in Delaware to determine whether or not Twitter can force the billionaire to go through with the acquisition.
Twitter has called on a host of tech investors and entrepreneurs associated with Musk, including prominent venture capitalist Marc Andreessen and David Sachs, the chief operating officer of PayPal.
Musk alleged that Twitter failed to provide adequate information about the number of fake or “spambot” Twitter accounts and that it breached its obligations under the deal by firing top executives and laying off significant numbers of employees.
Musk’s team expects more information about the bot numbers to be revealed in the trial court’s discovery process, when both sides are expected to present evidence.
Twitter says Musk has buyer’s remorse
Twitter claims Musk’s reasons for stepping down are just a cover for buyer’s remorse. Shortly after Musk agreed to pay a 38% premium over Twitter’s stock price, the stock market stumbled and shares of electric car maker Tesla, home to most of Musk’s personal wealth, lost more than US$100 billion from its value.
The summons was served last week. It is asking Dorsey for documents and communications related to the acquisition, as well as information about the effect of fake or spam accounts on Twitter’s business and the measurement of daily active users.
An attorney representing Dorsey did not immediately return a message for comment Monday.
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