Elon Musk has been sued by Twitter in an effort to make him carry out the terms of his agreement to acquire the social media company. The lawsuit was filed in Delaware Court of Chancery after Twitter’s senior attorney received a letter from Elon Musk stating that the $44 billion acquisition agreement may be terminated.
Musk’s attorney claimed that the firm was “in material breach of multiple provisions” of the agreement and that it had withheld information Musk needed to assess the amount of bots and spam accounts on the site. Retaliating, Twitter’s legal team declared Musk’s attempted deal termination “invalid and wrongful,” asserting that Musk had broken the terms of the agreement and urged him to carry out the agreement.
Musk initially stated that he intended to acquire Twitter in order to get rid of bots, but in recent weeks, he has raised concerns that there are far more bots on the site than Twitter has reported.
However, some experts have claimed that Musk is merely looking for a reason to back out of the deal that now appears to be expensive in light of the decline in Twitter shares and the general issues facing the tech sector. This may also be informed by the fact that Tesla‘s shares have also fallen since Musk agreed to the acquisition deal.
Musk has created such a big spectacle around acquiring Twitter and signing the agreement that this move will probably not be sliding under the radar. Nothing about Musk and Twitter’s deal has been usual, and Twitter’s complaint to enforce the agreement, which is replete with references to tweets and memes, emphasizes just how peculiar it has been.
Twitter disputed a number of Musk’s allegations that the company had violated the purchase agreement, including his letter’s assertion that Twitter had done so by letting go of 2 top executives last month. According to Twitter, Musk wanted the merger agreement to specify that no personnel at or above the level of vice president may be hired or fired without his approval.
This conversation has been ongoing for months at this point, and it seems that it will continue to develop until the two parties reach a resolution, or one of them agrees to acquiesce. Something tells us it’s not going to be Musk though.
Photo via Reuters