New post Need visibility? Apply for a FREE post for your Startup.  Apply Here

Big StoryNewsRandom

Twitter Heads To Court To Stop Musk From Backing Out Of $44 million Twitter Deal

2 Mins read

The news of Musk’s possible ownership of Twitter flooded the news some three months ago with his $44 million takeover proposition. The deal was to be sealed off sometime soon. However, Musk has within this period raised scepticism of the many possible fake and spam bot accounts on the platform. Now he tries to back out of the deal.

On Friday, Musk declared openly that he would not be moving forward with the $44 billion acquisition, writing that he would be “terminating” his agreement with the company.

In a letter dated Sunday, but filed with the SEC on Monday, Twitter called Musk’s move to terminate the deal “invalid and wrongful.”

Shortly afterwards, Musk tweeted an image of an armed character for the popular video game Elden Ring but did not add any further explanation.

Remember Musk appeared confident in his move to acquire Twitter earlier this year, securing approximately $25.5 billion in financing from outside lenders in addition to $21 billion of his own money in April, why is he now having cold feet in sealing off the deal?

Earlier in May, Musk announced that the deal was “temporarily on hold” pending an investigation into spam and bot accounts on the platform.

Amidst Musk’s replete scepticism about the prevalence of spam accounts on the platform, Twitter maintained that those accounts constitute fewer than 5% of its users. The company also provided Musk with internal data to support its claim.
But on Friday, Musk’s legal team announced he was officially walking away from the deal, again citing spam and bot accounts on the platform and arguing that the company had misrepresented itself.

“Twitter has not complied with its contractual obligations,” wrote Musk’s legal team in a letter submitted with their formal SEC filing.

Twitter’s letter in response made public on Monday rejects that claim.

“Mr Musk’s and the other Musk Parties’ purported termination is invalid and wrongful,” wrote William Savitt, an attorney for the firm Wachtell, Lipton, Rosen & Katz. “And it constitutes a repudiation of their obligations under the agreement.”

“Contrary to the assertions in your letter, Twitter has breached none of its obligations under the agreement, and Twitter has not suffered and is not likely to suffer a company material adverse effect,” Savitt continued.

Twitter and Musk will most likely face a prolonged legal battle in Delaware, where the original contract stipulates any business disputes must be resolved.


Bret Taylor, the chairman of Twitter’s board, has already made clear that the company stands by the deal, and will pursue legal means against Musk to hold up his end of the bargain.

“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,” Taylor wrote last Friday. “We are confident we will prevail in the Delaware Court of Chancery.”

Don’t miss any tech news ever!

We don’t spam! Read our privacy policy for more info.

424 posts

About author
We are the same, we may only be different in our experiences, values and exposures. Technology is a big part of my experience, learning is one of my values and writing my credible means of exposure.
Articles
Related posts
ArticleArtificial IntelligenceRandom

How To Replace Google With ChatGPT Search In Your Browser

1 Mins read
The advent of ChatGPT has changed how we make use of our conventional search engines. With its conversational AI capabilities, ChatGPT Search…
ArticleForeign startupsFundingRandom

PaySense Cofounder's New Startup Raises $25.5 Mn In Seed Funding

2 Mins read
Zinc, a fintech startup committed to helping Indian students seeking education abroad, has recently emerged from stealth mode and secured $25.5 million…
ArticleRandom

7 Innovative AI Startup Founders Of Nigerian Descent Thriving In Africa’s Booming Tech Landscape

2 Mins read
The African tech ecosystem has seen remarkable growth, with Nigeria leading the way. The African tech ecosystem valued at $480 billion, this…
Newsletter Subscription

🤞 Don’t miss any update!

We don’t spam! Read more in our privacy policy

Join our Telegram channel here - t.me/TechpadiAfrica

Leave a Reply