Update: Twitter Sues Elon Musk To Prevent Him From Backing Out Of $44 Billion Buyout Deal
Update: According to reports, Twitter launched a lawsuit against Elon Musk on July 12 to “compel” his completion of a $44 billion buyout of the social media company.
In recently surfaced court documents, Twitter claims Elon Musk acted in “bad faith” after reaching a deal to buy the media platform earlier this year. The documents state,
“In April 2022, Elon Musk entered into a binding merger agreement with Twitter, promising to use his best efforts to get the deal done. Now, less than three months later, Musk refuses to honor his obligations to Twitter and its stockholders because the deal he signed no longer serves his personal interests.”
“Having mounted a public spectacle to put Twitter in play, and having proposed and then signed a seller-friendly merger agreement, Musk apparently believes that he — unlike every other party subject to Delaware contract law — is free to change his mind, trash the company, disrupt its operations, destroy stockholder value, and walk away.”
The suit comes after Elon Musk made headlines earlier this month when he ended his deal to buy the company. Reportedly, he backed out of the deal because Twitter was in “breach of multiple provisions” of an original agreement. Elon Musk feels that Twitter did not provide enough information about the number of fake accounts and bots on its network and didn’t give his team sufficient data to do their own investigation.
Representatives for the SpaceX CEO said in court documents,
“Sometimes Twitter has ignored Mr. Musk’s requests, sometimes it has rejected them for reasons that appear to be unjustified, and sometimes it has claimed to comply while giving Mr. Musk incomplete or unusable information.”
Original Story: It looks like Elon Musk is the new official owner of Twitter!
Earlier today (April 25), reports surfaced that Elon Musk was nearing a deal to buy Twitter. This news comes just 11 days after the 50-year-old business mogul shocked the industry by offering to buy the company in a deal valuing it at more than $41 billion. Last week, Elon Musk revealed he had lined up $46.5 billion in financing to acquire the company. A source familiar with the deal says Twitter’s board met on Sunday (Apr.24) to evaluate Musk’s offer to buy all the shares of the company that he does not currently own for $54.20 a piece.
It now seems like everything worked out in Musk’s favor! According to the latest reports, Twitter Inc. has announced that it has entered into a definitive agreement under which it will be acquired,
“by an entity wholly owned by Elon Musk.”
With the reported cash deal being over $50 per share, the total amount for the social media platforms comes to roughly $44 billion. Once the transaction is complete, Twitter announced Monday afternoon, the company will go private.
Elon Musk seemingly hinted at the potential deal on Monday (Apr.25) when he tweeted,
“I hope that even my worst critics remain on Twitter, because that is what free speech means.”
On Thursday (Apr.21), he also revealed what he would like to do if his bid to own Twitter goes through successfully.
“If our twitter bid succeeds, we will defeat the spam bots or die trying!”
“I invested in Twitter as I believe in its potential to be the platform for free speech around the globe, and I believe free speech is a societal imperative for a functioning democracy. However, since making my investment I now realize the company will neither thrive nor serve this societal imperative in its current form. Twitter needs to be transformed as a private company.”