Twitter sues Elon Musk for terminating $44bn acquisition deal
Twitter has sued Elon Musk in order to force him to complete the proposed $44 billion takeover of the social media platform. To recall, the Tesla top boss terminated the agreement on Saturday. The lawsuit accused Musk of a long list of violations of the agreement and said that he ended the deal because it "no longer serves his personal interests."
- The stage is set for a long-drawn legal battle between Twitter and the world's richest man.
- The popular microblogging platform is aiming to complete the takeover or get the breakup fee of $1 billion. Its shares are down by over 8% in the past month.
- Meanwhile, Elon Musk remains adamant that Twitter didn't provide information about the number of spam accounts on the platform.
Twitter's lawsuit said that "Musk's exit strategy is a model of hypocrisy" and that he is carrying out "public and misleading attacks" on the firm. It added, "For Musk, it would seem, Twitter, the interests of its stockholders, the transaction Musk agreed to, and the court process to enforce it all constitute an elaborate joke." In response, Musk tweeted, "Oh the irony lol."
Musk's legal team cited the spam issue as the reason behind ending the deal. Musk believes that the number of bots was much higher than the 5% figure claimed by Twitter. The firing of high-ranking executives and the talent acquisition team by Twitter were also reasons behind terminating the acquisition. Musk might be ordered to pay $1 billion to walk away from the deal.
Twitter has hired US-based law firm Wachtell, Lipton, Rosen & Katz LLP to sue Musk. It was one of his legal advisers to take Tesla private in 2018. Meanwhile, Musk is being represented by Quinn Emanuel Urquhart & Sullivan.