Twitter sued Musk after he decided to pull out of the $44 billion takeover deal. (Proceedings)
Washington:
The dispute between Tesla CEO Elon Musk and Twitter is taking many twists and turns.
According to new reports, Elon Musk recently, but before pulling out of the deal, sent a text message to Twitter CEO Parag Agrawal on June 28, informing him that the company’s lawyers were trying to “cause trouble” after seeking information on financial details. that Musk planned to complete the acquisition of Twitter.
“Your lawyers are using these conversations to cause trouble. That needs to end,” Musk’s text read. Musk sent the particular message after Twitter asked Musk how he would fund the Twitter deal.
A few days ago, Twitter sued Musk after he decided to pull out of the $44 billion takeover deal.
According to The Verge, the lawsuit was filed in Delaware Chancery Court on Tuesday, charging Musk with hypocrisy. “Twitter brings this action to ban Musk from further violations to compel Musk to comply with his legal obligations and compel the consummation of the merger to satisfaction. of the few outstanding conditions,” Twitter wrote in the suit. The lawsuit marks the beginning of what could be a protracted legal battle, as Twitter seeks to force Musk to honor his agreement to pay $54.20 per share from the company. Twitter, which is being represented by powerful M&A law firm Wachtell, Lipton, Rosen & Katz, alleged that Musk sought an escape from the deal, which required a “material adverse effect” or breach of contract.
Musk had to try to conjure up one of those,” the lawsuit says. Musk announced the termination of the Twitter purchase agreement in a letter sent by Musk’s team to Twitter earlier this month.
Musk decided to call off the deal due to multiple breaches of the purchase agreement. In April, Musk reached a takeover deal with Twitter at $54.20 per share in a transaction valued at roughly $44 billion. However, Musk called off the deal in May to allow his team to review the veracity of Twitter’s claim that fewer than 5 percent of accounts on the platform are bots or spam.
In June, Musk openly accused the microblogging website of violating the merger agreement and threatened to walk out and cancel the acquisition of the social media company for failing to provide the data he requested about fake accounts and spam. Musk alleged that Twitter is “actively resisting and thwarting his information rights” as outlined in the settlement, CNN reported, citing the letter he sent to Twitter’s chief legal, policy and trustee Vijaya Gadde.
Musk demanded that Twitter hand over information about its testing methodologies to back up its claims that bots and fake accounts make up less than 5 percent of the platform’s active user base, a figure the company has consistently stated for years on Twitter. repetitive public disclosures.
