The company was to be bought by the CEO of SpaceX. AP photo
Twitter Inc sued Elon Musk on Tuesday for violating the 44 billion dollars to buy the social media platform and asked a Delaware court to order the richest person in the world to complete the merger. at agreed $ 54.20 per Twitter share, according to a court filing.
“After organizing a public show to bring Twitter into play and proposing and then signing a favorable supplier merger agreement, Musk believes that he, unlike any other party subject to Delaware contract law, You are free to change your mind, ruin the company, shut down operations, destroy shareholder value and walk away, ”the lawsuit said.
On Friday, Musk said he would be withdrawing from the deal because Twitter violated the deal by not responding to inquiries about fake accounts or spam on the platforms, which is critical to its business performance.
Late Friday, in a document presented by Musk’s lawyers to the Twitter legal department and published by the US Securities Market Commission (SEC), the billionaire unilaterally canceled the acquisition claiming that the technology violated the terms of the agreement.
Musk withdrew the operation. photo by Reuters
That said, Twitter did not miss the time to react and minutes after the news was published, its chairman, Bret Taylor, announced that the Board of Directors planned to “take legal action to finalize the agreement. purchase “in accordance with the price and terms” in agreement with Musk.
In late April, Twitter’s board of directors accepted Musk’s acquisition offer for approx $ 44 billion at $ 54.20 per share, which was a significant premium on the price then and on the current price as well, as Wall Street slipped into a bearish cycle.
“We are sure to win in the Delaware Chancellery Court,” added the Twitter president, who trusts that big trade disputes court to enforce the agreement and could seek financial compensation for the damages.
Musk responded true to form: with a meme.
The image shared by the tycoon is shown laughing with the following sentences: “They said I could not buy Twitter. Then they said they would not disclose information about the bots. Now they want to force me to buy Twitter in court. Now they have to reveal information about the bot. . ” in court”.
The meme Elon Musk shared on Twitter. (Photo: capture)
the court battle
The struggle that Elon Musk and Twitter have been having for months for the purchase of the social network will now go to court after the billionaire entrepreneur’s decision to cancel the operation, which leaves the Justice in front of a practically unprecedented case.
A priori, according to expert opinions gathered this weekend by the specialized media, Twitter has an advantage in this legal battle, in which it will seek Musk to complete the acquisition of his business within the agreed terms: 44,000 million dollars.
The company then launched an action before the Delaware Court of Chancery, a court specializing in large commercial disputes to force the application of the agreement signed between the two parties and, maybe ask for an economic compensation.
According to experts, Musk’s argument is to show that Twitter offered information about his business that deviated dramatically from reality, something extremely difficult.
In other words, it would not be enough, for example, to prove that fake accounts on social networks represent 6 or 7% of the total, since a priori this would not change significantly enough. the prospects of the business you have agreed to buy.
Source: Clarin
