Twitter Sues Elon Musk For Opting Out of $44 Billion Buyout Deal
Twitter has sued Billionaire Elon Musk over his violation of the $44 billion deal to buy the popular social media platform. As per the complaint documents filed in the Delaware Court, Twitter officials have asked the court to force Musk into the completion of the merger deal. The deal was previously decided at $54.20 per Twitter share. As of now, the shares of Twitter are worth around $34.
The merger agreement was signed by Twitter and the CEO of Tesla. However, the recently filed complaint states that Musk has been violating the terms of the deal since the signing of the agreement. Nonetheless, Musk has terminated the buyout deal. He claims that the social media platform is not providing the information and data of spam bots on Twitter. Thus, there is no point to carry on with the agreement.
On the other hand, the complaint states that the claims of Elon Musk are not based on merit. The complaint read that “Musk apparently believes that he – unlike every other party subject to Delaware contract law – is free to change his mind, trash the company, disrupt its operations, destroy stockholder value, and walk away.”
Twitter vs. Elon Musk – Filled with Spice!
Once the lawsuit starts its proceedings, it will be one of the most high-profile cases in the history of the finance markets. With the involvement of one of the biggest global entrepreneurs and one of the largest social media platforms, the case is set to remain in news. Twitter accuses Musk of a long list of violations in the contract. It also states that the billionaire secretly collected the shares of the platform. Also, he did not disclose information to the regulators.
Musk argues that Twitter has failed to provide data that is essential for the performance of his business. But Twitter argues that Musk is acting against the deal because the market is going into recession. As per the court filing, Musk is shifting the burden to Twitter stakeholders. Also, he does not want to face the financial consequences of market degradation.
Previously, it was anticipated that the merger deal will reap benefits for Dogecoin investors. Musk’s backing of DOGE is a known phenomenon. Thus, the news brought optimism to the investors of the coin who have suffered losses lately. But the recent events might further discourage investors from pouring money into the asset. At the time of writing, DOGE is priced under 6 cents in the market.