Twitter is suing Tesla’s billionaire owner Elon Musk to enforce its deal to buy the social network. The company insists that the accusations against it are untrue.
- Twitter Elon Musk sues Elon Musk for $44 billion buyout breach
- The company indicates that Musk did so because “no longer serves their personal interests”
- “Tesla CEO’s exit strategy is a model of hypocrisy”, says Twitter
The dispute between Twitter and the billionaire owner of Tesla y SpaceX, Elon Musk has all the makings of a Hollywood blockbuster. First, in mid-April of this year, Musk proposed the purchase of the company for USD $41.5 billion. . Days later, on the 25th of that month, Twitter accepted the proposal and a sale price of USD $44 billion. The following month, however, Musk began to back away from the proposal, making severe criticisms of Twitter especially the inaccurate information about fake accounts. Finally this month hinted that he would no longer buy it. and the company threatened to take legal action.
Well, now those legal actions are taking shape.
Twitter Inc. presented a asked against Elon Musk to force him to comply with the agreement to buy the social networking platform a place to buy, sell and store cryptocurrency for USD $ 44 billion. Twitter alleges that Musk has repeatedly breached the agreement since he signed the deal with the company.
The lawsuit, filed in Delaware Chancery Court, names Musk and his companies, X Holdings I y X Holdings II, as defendants.
Musk is refusing to fulfill his obligations to Twitter and its shareholders because the agreement he signed no longer serves his personal interests.
The reasons for the lawsuit
The lawsuit explains that after Musk signed the agreement with Twitter, the market fell and the value of its stake in the Tesla, and thus his personal wealth, down by more than USD $100 billion from its November 2021 peak.
Twitter further states that “Since the signing of the merger agreement, Musk has repeatedly disparaged Twitter and the deal, creating a business risk for Twitter and downward pressure on its share price.” emphasizing that the “Tesla CEO’s exit strategy is a model of hypocrisy.” y “a model of bad faith”.
Regarding Musk’s assertions that Twitter is materially breaching the agreement, the social media company insisted: “ These claims are pretexts and lack merit.” and added: “ Musk, by contrast, has been acting contrary to this agreement since the market an area or arena, online or offline, in which commercial dealings are conducted. began to change change — a concept relevant to cryptocurrencies that use the UTXO model — is the number of coins sent back to a user after they use their unspent outputs to initiate a transaction. and has breached the merger agreement repeatedly in the process.”
He also said:
Because of Defendants’ defaults and the uncertainty they have created, Twitter faces irreparable harm.
The lawsuit states: “Musk and his entities should be enjoined from further violations, ordered to comply with their obligations to work to satisfy the few closure conditions, and ordered to close refers to the closing price; similar to the same term used in stock trading. once those conditions are met.”
The social networking giant is seeking relief to the extent allowed by the merger agreement and an order compelling Musk to go ahead with the buyout deal.
Catherine Hill, portavoz de Twitter, would not comment beyond the legal filing, while Twitter board chairman Bret Taylor said the lawsuit is intended to “hold Elon Musk accountable for his contractual obligations.” in a nutshell tweet:
Twitter has filed a lawsuit in the Delaware Court of Chancery to hold Elon Musk accountable to his contractual obligations.
– Bret Taylor (@btaylor) July 12, 2022
Of course, Musk didn’t keep quiet. Shortly after Twitter filed the lawsuit, he responded with a very brief tweet, saying: “Oh, how ironic, hahaha.” which has received more than 150,000 “I like it” until now.
Oh the irony lol
– Elon Musk (@elonmusk) July 12, 2022
The demand for Twitter is full of details about discussions between Musk’s team and Twitter management over the past few months, including text messages recently sent by Musk telling the CEO and CFO to stop looking into the status of their funding for the deal.
According to the report, Twitter gave Musk more data on bots automated software that can carry out tasks such as cryptocurrency trades. than he was owed under the terms of the deal, including access to his so-called firehose of tweet data. Musk’s lawyer apparently wanted more than that, requesting emails and text messages from executives on the subject, a request that Twitter’s lawyers call a “highly unusual “given its initial decision not to submit to diligence.
Morale within Twitter has taken a hit since the Musk deal was announced, with employee attrition “on the rise since the signing of the merger agreement”, according to the complaint. Twitter alleges that Musk blocked his attempts to implement compensation programs to retain top talent while the deal was being completed. Before stepping down, Musk had said publicly that he would bring layoffs to Twitter if his offer was approved.
On Tuesday night, Twitter CEO Parag Agrawal attempted to address a place where cryptocurrency can be sent to and from, in the form of a string of letters and numbers. employee concerns with an internal memo, encouraging them to read the lawsuit. “We take this opportunity to tell our story and stand up for our company, our people and our shareholders.” writes, according to the memo obtained by Mike Issac from The New York Times.
Given that the merger agreement with Musk has an expiration date of Oct. 24, Twitter quiere que su caso se escuche antes de esa fecha. La compañía está presionando para que su caso vaya a juicio a mediados de septiembre, según una moción separada para acelerar presentada por la compañía. Twitter ha asegurado los servicios legales de Wachtell, Lipton, Rosen & Katz, a powerful firm with deep connections to the Delaware Court of Chancery and its history of hearing high-stakes corporate disputes, as reported by The Verge.
Version of DiarioBitcoin
Illustration by Nicole Leon, DiarioBitcoin