Like it was predicted, Twitter sued Elon Musk to force him to buy the company for $44 billion, as he previously suggested. This continues the struggle for the fate of the company, which has been going on since the spring.
The court must decide whether Musk remains obligated to buy the company, and whether Twitter breached its obligations to him, which would give the billionaire a chance to cancel the deal. We will remind, in the letter that Mask’s lawyers filed to the Securities and Exchange Commission, it is said that that Twitter did not provide the business information it was requested.
“Musk refuses to fulfill his obligations to Twitter and its shareholders because the agreement he signed no longer meets his personal interests. Musk apparently believes that he — unlike any other party subject to Delaware contract law — is free to change his mind, destroy the company, disrupt its operations, destroy shareholder value and walk away,” the company’s lawsuit says.
Earlier Mask wanted to make sure it was true that only about 5% of monetized daily active user accounts were fake. This was the reason for the termination of the agreement by Musk. He claimed that Twitter refused to provide information about spambots. He also repeatedly questioned the company’s public claims that only 5% of users are bots.
Since Musk signed an agreement with Twitter, the company can sue and force the billionaire to complete the acquisition. Twitter said its attempt to terminate the deal was “invalid and illegal.” The company is confident in the numbers regarding fake accounts.
“Musk wanted an escape. But the merger agreement left him little room,” the company said.
In its lawsuit, Twitter says Musk wants out of the deal because of changes in the stock market that have affected his fortune. We will remind, due to the fall in the prices of shares of technology companies, the price offered by Musk became too high. Shares of Tesla Inc., which is expected to help Musk partially finance the purchase, also fell.
Because of this, the deal with Twitter may not be as beneficial to Musk now as it was before. The billionaire is looking for a way to get out safely but Twitter plans to prosecute him.