Twitter has asked a Delaware court to force billionaire entrepreneur Elon Musk to honor his $44 billion agreement to buy the social media company.
In a lawsuit filed Tuesday in the Delaware Chancellor’s Court, attorneys for Twitter Musk said he should be forced to complete the merger at the $54.20 per share price agreed upon when the deal closed in late April.
“Having organized a public spectacle to bring Twitter into play, and after proposing and then signing a seller-friendly merger agreement, Musk appears to believe that, unlike any other party subject to Delaware contract law, it gives him is free to change its mind and destroy the company, disrupt its operations, destroy shareholder value and walk away,” the complaint reads.
“This denial follows a long list of material breaches of contract by Musk that have eclipsed Twitter and its business,” he added.
The move sets the stage for a chaotic legal battle between the Silicon Valley company and one of its most prolific and powerful users.
musk announced plans to buy Twitter in early April, promising to boost its ailing business and implement an ethos of “free speech”.
However, he said on Friday that he intends to go away out of the deal, claiming that Twitter violated its merger agreement by not handing over enough information to help it estimate the number of fake accounts and bots on its platform.
His team also disputed Twitter’s current estimate for the number of fake accounts, which puts it at 5 percent of users, and accused the company of making “materially misleading statements” in its public statements.
Musk also claimed Twitter violated its obligation to “conduct its business as normal” by firing several senior executives after the deal was announced.
Some analysts have suggested that Musk could try to negotiate the deal at a lower price given the defeat in tech stocks, and that the parties could reach an agreement to avoid costly and lengthy litigation.
Twitter sues to force Elon Musk to complete $44bn deal Source link Twitter sues to force Elon Musk to complete $44bn deal