The battle for the Twitter deal is entering the next round: Twitter is suing Elon Musk – Elon Musk is suing Twitter. But who wins?
For over 40 billion US dollars wanted Tesla boss Elon Musk once took over the social media platform Twitter. But after the Twitter deal fell through, both parties are now suing each other.
The battle for the Twitter deal enters the next round
After Twitter recently filed a lawsuit against Elon Musk to make him buy the platform among the previously to commit to the agreed terms, Musk is now countering with a counterclaim. However, due to confidential content, the complaint filed last Friday is not publicly accessible. Under court rules, Musk’s attorneys have a few days to file a non-confidential version suitable for public viewing.
Musk’s attorneys wanted to delay the trial until next year . But Twitter was able to convince the responsible judge that a timely decision on the Twitter deal is necessary. So there is now a five-day trial starting on . October 2022 in the Delaware Chancery Court on the agenda of the two brawlers.
Elon Musk could still get away scot-free
Some US experts see Musk at a disadvantage in this negotiation, so that the court could certainly order the takeover to be completed. After all, the Tesla founder voluntarily refrained from a thorough examination when he initiated the Twitter deal. Alternatively, Musk could be fined up to $1 billion. Because this amount was agreed in April in the takeover agreement by the two parties.
Ultimately, however, Twitter could also ensure that Musk gets off scot-free. Because as the daily mirror reports, the company has for the 13. A shareholders’ meeting was called to vote on the Twitter deal on Sept. Should a majority of the shareholders vote against the takeover, this would automatically result in agreement between both parties.
What happened so far – The Twitter love story 2022
It was only in April of this year that Elon Musk offered over 40 Billions of dollars for Twitter. In fact, he was offering shareholders 38, dollars per share. At the time, that meant a premium of 38% to the closing price on April 1st. Musk’s words on the acquisition: “Twitter has tremendous potential. I’ll unlock it.” His original plan behind the Twitter deal was to establish the service as a global platform for freedom of expression and thereby strengthen democracy. He even put it to a Twitter vote.
At first, Twitter’s management refused to approve the acquisition. But after Musk was able to demonstrate that he could actually raise the funds for the purchase, the board of directors approved the Twitter deal.
The main reason for Musk’s resignation from the Twitter deal in early July is likely to false and misleading information about spam or fake accounts on Twitter. Musk also said Twitter didn’t give him sufficient access to check the numbers. But Twitter didn’t let that sit. The company accused Musk of only wanting to get out of the deal prematurely because of the weakening stock markets.