Elon Musk bailing on the $44 billion Twitter acquisition saga has taken an interesting turn.
Twitter Is Taking Elon Musk To Court
After hinting that he would pull out of the deal to acquire Twitter, Elon Musk did it, sticking to his excuse that Twitter made “false and misleading” statements during negotiations.
Now, Twitter is saying that aht aht aht and slapped Mr. Musk with a lawsuit in Deleware that states he must honor the deal as is.
Per The New York Times:
To push Mr. Musk to abide by the acquisition agreement, Twitter sued him in Chancery Court in Delaware. The court will determine whether he remains on the hook for the purchase or whether Twitter violated its obligation to provide Mr. Musk with data he requested, entitling him to walk away.
“Musk refuses to honor his obligations to Twitter and its stockholders because the deal he signed no longer serves his personal interests,” the company said in the suit. “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.”
The Real Reason He Backed Out of The Deal
Musk’s beef with the deal is he believes Twitter is not being honest about the number of bot accounts on the platform. Matt Levine, a Bloomberg financial opinion columnist, wasn’t buying that argument from the jump.
“The spam bots are not why he is backing away from the deal, as you can tell from the fact that the spam bots are why he did the deal. He has produced no evidence at all that Twitter’s estimates are wrong and certainly not that they are materially wrong or made in bad faith,” Levine wrote.
“Musk knew those estimates and declined to do any nonpublic due diligence before signing the merger agreement,” Levine added.
The belief is Musk tried to get Twitter “to reprice the deal,” clearly, his plan flopped because the social media company is taking his a** to court.
Photo: Dimitrios Kambouris / Getty