Last week, Tesla’s CEO Elon Musk announced that he was terminating his acquisition of Twitter for $44 billion. Citing that Twitter had breached various provisions of the merger agreement. In response, the company’s board chairman said that the board will engage on some legal actions to enforce the merger agreement. “The Twitter Board is committed to closing the transaction on the price and terms agreed upon with Mr. Musk and plans to pursue legal action to enforce the merger agreement,” a tweet he shared reads.
Twitter has filed a suit against billionaire tech CEO Elon Musk. The suit filed on Tuesday in the Delaware Court of Chancery. After the Tesla and Space X boss terminated his $44 billion takeover deal. According to Twitter, Elon Musk is refusing “to honor his obligations to Twitter and its stockholders because the deal he signed no longer serves his personal interests” after entering a binding merger agreement.
Elon Musk, on the other hand, has continued to cite Twitter bots alongside the absence of adequate information from Twitter to evaluate the deal. For the reason for his delay turned termination.
Filed case against Elon Musk
The lawsuit which they filed less than twenty-four hours ago. This is the onset of what could be a long legal battle between social media company Twitter and Elon Musk. Thus, who seems to only want out of the agreement now. According to an April SEC filing, in a situation where he is unable to secure enough debt funding to complete his $44 billion bid to acquire Twitter. He has to pay Twitter a termination fee of $1 billion. This, however, isn’t a case of lack of funding. Legal experts say that while the outcome of the legal battle is unpredictable, it could either end up with he being forced to complete the deal, pay the $1 billion breakup fee, or a settlement/renegotiation of the deal could be reached. Some even add that it may end up with the billionaire walking completely free from the deal.
