On Tuesday, Twitter filed a case against Musk in a court in Delaware, US. In its application, the world’s leading social media site Twitter has asked the court to direct the world’s richest person to fulfill this agreement.
This social site has filed a case in court against SpaceX and Tesla owner Elon Musk for breaking the agreement to buy Twitter. Musk had done this deal for $ 44 billion, but gradually withdrew from it and now announced the termination of the deal.
On Tuesday, Twitter filed a case against Musk in a Delaware court in the US for breaking the deal. In its application, the world’s leading social media site Twitter has asked the court to direct the world’s richest person to fulfill this agreement. Musk had signed an agreement to buy Twitter shares at a value of $ 54.20.
Shares of both companies came down
In April, Musk announced the purchase of Twitter and it was approved by Twitter’s board, then the social site’s share price jumped to $ 50, but on Tuesday it fell to $ 34. On the other hand, shares of Musk’s company Tesla have also come down 30 percent. Tesla shares closed at $699.21 on Tuesday. Musk decided to terminate the deal, saying the exact number of Twitter spam and fake accounts was not known. Despite repeated requests, the social site is not giving concrete information about this. As such, the agreement cannot be extended.
- Musk and Twitter’s arguments
Musk said he was terminating the deal due to lack of knowledge about spam accounts and false claims.
- Twitter is responsible for the breakdown of the deal, as it has failed to provide the information, while it was obliged to give this information.
- Twitter said it had negotiated a continuation of the deal, but Musk violated it.
- The reasons Musk is giving are mere ‘excuses’. There is no solid ground for breaking the contract. Actually, the reason for breaking the deal is the fall in the shares of tech companies. Because of this, Musk terminated the deal.
Experts in US law regarding acquisitions and mergers say that Twitter’s claim has merit. The way Musk negotiated the deal and then broke it is unfair to traditional takeover methods. Now it remains to be seen what stand the court takes.