Twitter said on July 11 that Elon Musk’s abandonment of his proposed acquisition of the social network for 44 billion dollars is ” invalid and unjustified “. Lawyers for the California company say the deal is still ongoing.
Twitter wants to close the deal
Twitter is determined not to give in to the leader of Tesla. A few days earlier, on July 8, Elon Musk returned to the takeover of the social network initiated at the end of April. The billionaire’s lawyers accuse the San Francisco-based company of failing to provide the data needed to assess the number of fake accounts present on the platform. If each quarter since 2014, Twitter reports less than 5% of spam accounts, for Elon Musk this number would be rather around 20%.
In response letterWilliam Savitt, Twitter lawyer working for Wachtell, Lipton, Rosen & Katz, wrote that “ Twitter has not breached any of its obligations under the Agreement, and has not suffered and is not likely to suffer a Material Adverse Effect. As has been the case for the past several months, Twitter will continue to provide information reasonably requested by Mr. Musk under the agreement and diligently take all necessary steps to complete the transaction. “.
Bret Taylor, chairman of the board of directors of Twitter, explained in a tweet that ” Twitter’s board has agreed to complete the transaction at the price and terms agreed with Mr. Musk and plans to take legal action to enforce the merger agreement. We are confident that we will prevail in the Delaware Court of Chancery “.
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. We are confident we will prevail in the Delaware Court of Chancery.
—Bret Taylor (@btaylor) July 8, 2022
If the deal does not go through, Elon Musk will have to pay a billion dollar termination fee.
The start of a legal battle
Since’Elon Musk became Twitter’s largest shareholder in early April, the value of the action of the social network has continued to fall. It fell from $50.98 on April 5 to $32.65 when the Wall Street Stock Exchange closed on July 11. This is much less than the 54.20 dollars per share promised by Elon Musk for the takeover of the company.
The responses of both parties in recent days mark the beginning of a legal battle that promises to be eventful. While waiting for the outcome of this affair, which could take a few more months, Elon Musk continues to do what he knows how to do best: to tease the leaders of the social network through sarcastic tweets.
— Elon Musk (@elonmusk) July 11, 2022