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13 July: Gloves Off As Twitter Sues Musk For Ditching Takeover Bid
Twitter has carried through its threat to sue Elon Musk after the Tesla boss announced last week (see story below) that he is walking away from his £36.5 billion bid to buy the social media platform, writes Kevin Pratt.
In what looks set to be a lengthy and acrimonious legal battle – Twitter’s complaint filed with the Delaware Court of Chancery calls Mr Musk’s behaviour “a model of hypocrisy” – the main issues are the number of fake accounts on the platform, and the $1 billion break clause in the original contract.
Mr Musk is refusing to pay the sum, arguing that Twitter has not provided him with the information he needs to verify the number of genuine accounts.
The original offer for Twitter was at $54.20 per share but the stock is now trading below $35. Recent falls are attributed to Mr Musk’s announcement, but the price was already around the $40 per share mark before last weekend.
Twitter’s legal filing reads: “In April 2022, Elon Musk entered into a binding merger agreement with Twitter, promising to use his best efforts to get the deal done. Now, less than three months later, Musk refuses to honor his obligations to Twitter and its stockholders because the deal he signed no longer serves his personal interests.
“Having mounted a public…
