01 August 2022
Twitter has sued Tesla and SpaceX CEO Elon Musk as he is attempting to back out of the acquisition deal. The lawsuit has been filed in the Delaware Court of Chancery as the company is incorporated there. It wants the world's richest man to honor the deal and complete the acquisition which he agreed to in April.
Musk had originally said yes to acquiring Twitter for a whopping $44 billion about three months ago. He had valued the company at $54.20 per share which was also his original proposal. However, just a month later, he decided to put the acquisition on hold citing uncertainty related to the number of fake accounts on the platform. He wanted to check for himself that bot and spam accounts indeed accounted for less than 5% of all Twitter accounts.
He eventually gave up on the proposed deal over the past weekend. He is reported to have sent a letter to Twitter informing them about the termination of the merger agreement. The letter mentioned that the company has failed to meet contractual obligations which has led to the end of talks. This is exactly what has resulted in Twitter deciding to sue the renowned entrepreneur.
The lawsuit reads, "Twitter brings this action to enjoin Musk from further breaches, to compel Musk to fulfill his legal obligations, and to compel consummation of the merger upon satisfaction of the few outstanding conditions". Musk responded to the lawsuit news with a tweet that says, "Oh the irony lol".
It is hard to say in what direction the whole situation will move next. Nevertheless, we will keep you posted about all the developments related to the tussle between Twitter and Musk.