Alex Bruno
After abandoning his efforts to purchase the social network at the beginning of July, the wacky billionaire is already facing legal action from the company. According to the wall street journal, Elon Musk, who is being sued by Twitter for breaking his commitment to buy the social network, retaliated on Friday by suing the company in a Delaware court.
This complaint is held in strict confidence and is not yet accessible to the general public. Shortly after the court in charge of Twitter’s case determined an October 17 date for the commencement of conflicts, the CEO of Tesla filed a countersuit, which appears to be an intensification of the legal fights that have been going on between the two parties.
According to what the media has been able to gather, one of the demands made by Elon Musk pertains to a claim that Twitter misled about the number of users that could be redeemed after approving his offer to acquire the company. Twitter initiated legal action against Musk on July 12 and filed a complaint.
Twitter Battle
Elon Musk had initially declared in April that he intended to purchase the social media network for a price of 44 billion dollars. However, he officially declared at the start of July that he was terminating the contract on the basis that the company based in San Francisco had, in his opinion, lied about the ratio of spam accounts that are present on its platform.
On July 12, Twitter filed a suit in a courtroom in Delaware (located in the northeast), with the intention of compelling the wealthiest man on the planet to fulfill his buyout agreement. The social media platform, which asserts that fewer than 5 percent of its active members are imposters, is attempting to enforce the contract or else seek severance compensation, which is expected to be in the range of one billion dollars.
Elon Musk committed to making an offer of $54.20 for each share of Twitter. However, the value of Twitter swiftly declined to fall to roughly 32 dollars on July 11, the day before his lawsuit against Elon Musk, due to the overall decrease in the global market over the past months, the reduction in advertising income which impacts the social network, and the condemnation of the billionaire tycoon in public. On Friday, it was selling at $41.61 per share.
Source: California18/Reuters/Bloomberg
