The micro-blogging service Twitter now wants to force the planned takeover by Elon Musk in court.
Twitter and Elon Musk are in a legal battle.
Twitter filed a lawsuit against Elon Musk in the Delaware Court of Chancery on Tuesday. Musk dropped the $44 billion deal last week. The reason: Twitter did not want to disclose its information on fake accounts and spam bots. In this way, Musk cannot adequately evaluate the business.
Prelude to a long legal dispute?
Now Twitter wants to force the Tesla founder to take over the micro-blogging service in court. According to the 60-page lawsuit, Musk refused to
“To honor his obligations to Twitter and its shareholders because the agreement he signed no longer served his personal interests.”
The lawsuit could be the prelude to a long-running legal battle. Twitter wants Musk to pay $54.20 per share for the company as agreed. Musk, on the other hand, is trying to evade this agreement.
Possible scenarios for the outcome of this lawsuit include a $1 billion transfer fee for Musk, a settlement, a purchase price renegotiation, a judge’s ruling in Musk’s favour, or an order to complete the acquisition as planned.
Twitter criticizes “public spectacle”
Twitter accuses Musk of
to have acted.
“Having made a public spectacle to bring Twitter into play, and after proposing and then signing a seller-friendly merger agreement, Musk appears to believe that – unlike any other party subject to Delaware contract law – free to change his mind, ruin the company, disrupt its operations, destroy shareholder value and leave.”
says the lawsuit.
Musk pretends to be amused
According to Twitter, Musk’s explanations for the failed deal are just excuses to get out of business because the market has turned. Instead of $54.20, Twitter stock is now worth just $34. This puts the enterprise value 37 percent below Musk’s offer. According to Twitter, this fact is also partly to blame for Musk’s behavior.
“Since signing the merger agreement, Musk has repeatedly denigrated Twitter and the business, posing a business risk for Twitter and putting pressure on the company’s stock price,”
according to Twitter in the lawsuit. Musk
in response to the filing of the complaint only
“Oh the irony lol”