Twitter sues Elon Musk seeking enforcement of $44B takeover
Twitter sues Elon Musk seeking enforcement of $44B takeover

Twitter sued billionaire and CEO of Tesla Motors Elon Musk Tuesday in an effort to force him to complete his US$44 billion acquisition of the social media company.

In April Twitter’s board of directors accepted Musk’s offer to purchase the social media platform for $44 billion, at $54.20 a share.

Lawyers for Twitter filed a lawsuit in the Delaware Court of Chancery on Tuesday after Musk’s lawyers wrote to Twitter and stated that Musk wished to terminate the acquisition agreement due to a breach of terms.

The company’s lawsuit stated that:

In April of 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 honorr his obligations to Twitter and its stockholders because the deal he signed no longer serves his personal interests

Within the lawsuit Twitter accused Musk of trying to terminate the deal due to a consequent hit to his wealth after a fall in the stock market, rather than genuine concerns over fake accounts on the platform. However Musk’s lawyers have argued that Twitter has breached its obligation to provide him with the information he has requested from the company.

Musk’s lawyer Mike Ringler wrote in his letter to Twitter that “Twitter has not complied with its contractual obligations. For nearly two months, Musk has sought the data and information necessary to ‘make an independent assessment of the prevalence of fake or spam accounts on Twitter’s platform’. This information is fundamental to Twitter’s business and financial performance and is necessary to consummate the transaction.”

Twitter chairman Bret Taylor responded to the events in a tweet, writing that “The Twitter board is committed to closing the transaction on the price and terms agreed upon with Musk and plans to pursue legal action to enforce the merger agreement.”

Twitter has additionally filed a motion to expedite proceedings in the case, requesting that a trial on the dispute be completed in September.