The ongoing conflict between Twitter and Elon Musk has taken a litigation turn, which was entirely predicted. This comes as the social media site owners have sued Mr. Musk for attempting to back out of the $44 billion acquisition contract.
You can access the court filings from the lawsuit, which was filed in the Delaware Court of Chancery, here (PDF). This week, Twitter chairman Bret Taylor tweeted the specifics, and current CEO Parag Agrawal retweeted it.
According to the lawsuit filed by the social media site, “Twitter takes this action to prohibit Musk from further breaches, to compel Musk to perform his legal responsibilities, and to compel consummation of the merger upon satisfaction of the few outstanding requirements.”
Musk gave his customary “lol” response in response.
As has been well reported, tech entrepreneur Elon Musk has been seeking methods to reduce the purchase price ever since he announced his intention to buy the firm in late April for $54.20 per share. He also objected to Twitter’s accuracy in revealing the number of spam/bot accounts that are currently active on the network.
This has emerged as a particularly contentious issue and appears to be the mountain Musk desires to die on in order to finish the acquisition.
Conceivable outcomes – Elon Musk is sued by Twitter
There are currently three conceivable outcomes, thus it is unclear if he will be successful in his endeavors.
- The first is Musk’s decision to pay the agreed-upon $1 billion penalties for terminating the agreement.
- Next, it is thought that Musk has a case because the transaction was completely scrapped and Twitter was in violation of the negotiation procedure.
- Last but not least, Musk has no case and is compelled to complete the $44 billion acquisition, which would be a wildly inflated price given how much Twitter’s shares have varied in value over the past several weeks.
What began as an expensive prank may have cost both parties financially or in terms of their reputations.