Twitter Sues Elon Musk to Force Closing of $44 Billion Deal
Twitter has filed a lawsuit in Delaware suing Tesla CEO Elon Musk, to force the latter to complete his proposed $44 billion deal, reports Bloomberg.
“Having mounted a public spectacle to put Twitter in play, and having proposed and then signed a seller-friendly merger agreement, 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,” said the Twitter lawsuit.
“This repudiation follows a long list of material contractual breaches by Musk that have cast a pall over Twitter and its business,” read Twitter’s lawsuit. “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 refuses to honor his obligations to Twitter and its stockholders because the deal he signed no longer serves his personal interests,” added Twitter.
Previously, Musk notified Twitter he was terminating the deal, citing a material breach over the discrepancy related to spam accounts. Twitter pushed back and balked at Musk’s termination, to which the latter responded by sharing memes.
Chancery court in Delaware is known to force companies to complete deals and not walk away. Twitter is seeking a four-day trial in September. The Twitter deal with Musk is supposed to close on October 24, 2022.