Twitter is suing Musk after he decided to back out of a $44 billion acquisition deal. (file)
Washington:
The dispute between Tesla CEO Elon Musk and Twitter is taking many turns.
According to new reports, Elon Musk recently, but before pulling out of the deal, sent a message to Twitter CEO Parag Agrawal on June 28, informing him that the company’s lawyers were trying to “make trouble” after they sought information about the financial details that Musk plans to complete the acquisition of Twitter.
“Your lawyers are using these conversations to create trouble. This has to stop,” Musk’s text reads. Musk sent the specific message after Twitter asked Musk how it would finance the Twitter deal.
A few days ago, Twitter sued Musk after he decided to back out of a $44 billion acquisition deal.
According to The Verge, the lawsuit was filed in Delaware Court of Chancery on Tuesday, accusing Musk of hypocrisy.”Twitter is filing this lawsuit to protect Musk from further wrongdoing, to force Musk to comply with his legal obligations and to compel Musk to complete the merger after satisfying the few outstanding conditions,” Twitter wrote in the lawsuit. The lawsuit marks the start of what could be a lengthy legal battle as Twitter tries to hold Musk to his deal to pay $54.20 per share for the company. Twitter, which is represented by the mergers and acquisitions law firm Wachtell, Lipton, Rosen & Katz, claims that Musk sought to escape the deal, which requires a “material adverse effect” or breach of contract.”
Musk should have tried to come up with one of those,” the lawsuit states. Musk announced the termination of the deal to buy Twitter in a letter Musk’s team sent to Twitter earlier this month.
Musk decided to terminate the deal due to multiple violations of the purchase agreement. In April, Musk reached an agreement to acquire Twitter for $54.20 per share in a deal valued at approximately $44 billion. However, Musk delayed the deal in May to allow his team to review the veracity of Twitter’s claim that less than 5 percent of accounts on the platform are bots or spam.
Back in June, Musk openly accused the microblogging website of violating the merger agreement and threatened to withdraw and cancel the acquisition of the social media company because it did not provide the data he requested about spam and fake accounts. Musk claims Twitter is “actively resisting and thwarting his information rights” as outlined in the deal, CNN reported, citing a letter he sent to Twitter’s head of legal affairs, policy and trust, Vijaya Gade.
Musk has demanded Twitter hand over information about its testing methodologies to back up its claims that bots and fake accounts represent less than 5 percent of the platform’s active user base, a figure the company has consistently stated for years in boilerplate public disclosures .
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