Twitter Sues Elon Musk, Seeking to Force Him to Complete $44 Billion Takeover

“We are confident we will prevail in the Delaware Court of Chancery,” Taylor wrote. Shortly after Musk's letter was disclosed, Twitter chairman Bret Taylor tweeted that the company would seek legal action to force Musk to consummate the pact.
Last Friday, after latching on to the idea that Twitter was lying about its claim that less than 5% of its active users are spam/bot accounts, Musk made good on his threat to walk away from the Twitter deal. He told the company in a letter from his lawyers that he was terminating the acquisition offer because, he alleged, the company breached the merger agreement mainly by “dramatically understating the proportion of spam and false accounts.”
It's also possible that the parties will settle out of court. Even if Musk wins a court ruling that he is not legally obligated to complete the $44 billion acquisition, he would most likely have to pay a $1 billion breakup fee to Twitter.
He suggested, without providing any evidence, the Twitter user base could represent “20% fake/spam accounts.” In early June, he threatened to spike the deal over the spam/bot issue. Meanwhile, Musk also acknowledged that lining up debt financing had become an obstacle to closing the transaction.” /> A few weeks later, Musk suddenly took issue with Twitter's longstanding claim that spam and fake accounts make up less than 5% of daily active users.
As promised, Twitter has formally sued Elon Musk, swinging a legal cudgel at the tech mogul in hopes of making him comply with his original $44 billion offer for the company.
“Now they want to force me to buy Twitter in court. On Sunday night, Musk responded to Twitter’s legal threat with a meme showing the billionaire laughing at the prospect of the company needing to disclose data about spam and fake accounts in court. “They said I couldn’t buy Twitter. Now they have to disclose bot info in court.” Then they wouldn’t disclose bot info,” Musk’s post said.
Twitter is being represented in the case by Wachtell, Lipton, Rosen & Katz, the New York City law firm focused on mergers, acquisitions and other business transactions.
Musk to strongly believe that the proportion of false and spam accounts included in the reported [monetizable daily active user] count is wildly higher than 5%," Musk's July 8 letter to Twitter said. Musk’s advisors of the information provided by Twitter to date causes Mr. "Preliminary analysis by Mr.
The suit was filed Tuesday in the Delaware Court of Chancery, which specializes in hearing business disputes, including M&A battles, that involve corporations incorporated in Delaware (as Twitter is).
The conservative CEO of Tesla and SpaceX was abuzz with ideas for changes he wanted to make at Twitter, including making Twitter strictly adhere to “free speech” principles. On April 25, Musk, the world’s richest individual, clinched a deal to buy Twitter with the company's board, coming after he had amassed a 9.2% stake.

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