Twitter Sues Musk Over Botched Takeover Deal
After weeks of uncertainty and intrigue over the fate of Twitter’s future, Tesla CEO Elon Musk officially ended his campaign to purchase the social media giant.
His reasoning was simple, and he wasn’t afraid to spill the details publicly, suggesting that Twitter had vastly underrepresented the number of bot and spam accounts active on the platform. When pushed on the numbers, Twitter pushed back, forcing Musk to reevaluate the purchase possibility and renege on the deal.
This week, Twitter fired back, suing Musk over the ordeal.
Twitter filed suit against Elon Musk in the Delaware Court of Chancery on Tuesday after the billionaire said he was terminating his $44 billion deal to buy the company.
Twitter said Musk, after entering a binding merger agreement, now “refuses to honor his obligations to Twitter and its stockholders because the deal he signed no longer serves his personal interests.”
The lawsuit filed on Tuesday marks the beginning of what could be a protracted legal battle as Twitter seeks to hold Musk to his deal to pay $54.20 per share for the company, and as Musk seeks to be let out of the agreement because of issues with spam bots or deal procedure.
Twitter had some serious accusations about Musk’s behavior.
Twitter said that Musk’s conduct during his pursuit of the social network was “bad faith” and accuses the Tesla CEO of acting against the deal since “the market started turning.”
Musk has already suggested that the Twitter lawsuit would force the platform to reveal the true scope of the fake account problem in court, thus proving that he was correct all along.
