Elon Musk, the CEO of Tesla, and Twitter are engaged in a heated argument that is changing all the time. According to recent sources, Elon Musk recently, but before walking away from the agreement, texted Twitter CEO Parag Agrawal on June 28 to let him know that the company’s attorneys were attempting to “create problems” after they requested information on the financial details that Musk was planned to utilize to finalize the purchase of Twitter.
“These chats are being used as fodder by your attorneys. That should cease, “According to reports, Musk wrote. After being questioned by Twitter about how he would pay for the Twitter agreement, Musk delivered a specific statement. After Musk chose to pull out of the $44 billion acquisition offer a few days ago, Twitter filed a lawsuit.
According to The Verge, the complaint charging Musk with hypocrisy was submitted on Tuesday to the Delaware Court of Chancery. Twitter filed the complaint in an effort to stop Musk from breaking any more laws, force him to fulfill his legal commitments, and force completion of the merger after the compliance of the few remaining criteria.
As Twitter tries to hold Musk to his agreement to pay USD 54.20 per share for the business, the lawsuit signals the start of what could be a lengthy court struggle. Twitter, which is being represented by M&A powerhouse Wachtell, Lipton, Rosen & Katz, said Musk tried to back out of the agreement, which needed a shareholder vote “Material adverse impact” or “contractual violation”
Musk needed to attempt to summon one of them “the complaint said. In a letter delivered by Musk’s team to Twitter earlier this month, Musk announced the termination of the Twitter acquisition agreement.
Due to many violations of the acquisition agreement, Musk made the decision to halt the transaction. In a deal worth around USD 44 billion, Musk and Twitter agreed to be acquired in April for USD 54.20 per share. Musk, though, placed the agreement on hold in May so that his team could examine Twitter’s assertion that fewer than 5% of accounts on the network are spam or bots.
Back in June, Musk publicly charged the microblogging platform with violating the terms of the merger agreement and threatened to walk away and cancel the purchase of the social media firm if it did not provide him the information he had asked for about spam and phony accounts.
In a letter to Twitter’s director of legal, policy, and trust, Vijaya Gadde, Musk claimed that Twitter is “actively rejecting and undermining his information rights” as stated in the agreement, CNN said. In order to corroborate its assertions that bots and phony accounts make up fewer than 5% of the platform’s active user base—a statistic the business has repeatedly cited for years in boilerplate public disclosures—Musk asked that Twitter disclose information regarding its testing procedures.
Source: NDTV