Twitter sues Elon Musk for terminating $44 billion buyout deal
Twitter has started legal action against Tesla CEO Elon Musk after the billionaire announced on Friday that he was terminating his $44 billion buyout deal with the social network citing ‘multiple’ problems after putting the acquisition “temporarily on hold” in May pending details supporting calculations that spam/fake accounts represent a larger than previously declared percentage of users.
The Financial Times, which obtained filings by Musk terminating the deal, report how the businessman has alledged Twitter was “in material breach of multiple provisions” of the sale agreement, and “appear[ed] to have made false and misleading representations,” noting how the number of spam and fake accounts on the platform were “wildly higher” than the 5 percent disclosed by Twitter during the initial takeover discussions, according to a filing by Musk.
Now, Reuters reports that Twitter is filing a lawsuit after Musk “destroy[ed] stockholder value” and trash-talking the company.
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.
Musk acquired a 9.2% stake in the platform at the beginning of April for $2.89 billion, becoming one of the biggest shareholders in Twitter, with a more significant stake in the company than the former CEO, Jack Dorsey. Two weeks later, Musk proposed a $43 billion buyout of the company, with Twitter saying at the time that it would consider the offer “carefully.”
Follow @TheApplePost on Twitter for the latest coverage and analysis on all things Apple. Read the day’s latest stories and stay on top of the latest Apple news, iPhone leaks and Mac rumors with the theapplepost.com app – available from the App Store.