International

Twitter Sues Elon Musk For Violating $44 Billion Merger Deal

by Sakeena Sayyed
Musk
The lawsuit will be a prolonged legal battle as Twitter seeks to hold Musk to his deal to pay USD 54.20 per share

Mumbai: Tesla CEO Elon Musk was sued by Twitter on Tuesday for violating the $44 billion deal to buy the social media platform. Twitter asked a Delaware court to order the world’s richest person to complete the merger at the agreed $54.20 per Twitter share. Minutes after this news surfaced online, Musk took to the microblogging site and just simply tweeted, “Oh the irony lol.”

Earlier on Monday, before the lawsuit was filed, Elon Musk tweeted a meme mocking the progress of the $44 billion acquisition bid. In the meme,  Musk has shared ‘his reactions’ to the twists and turns in the Twitter takeover saga. The meme reads: “They said I could not buy Twitter. Then they wouldn’t bot info. Now they want to force me to buy Twitter in court. Now they have to disclose bot info in court.

Twitter also accused Musk of “secretly” accumulating shares in the company between January and March without properly disclosing his substantial purchases to regulators, and said he “instead kept amassing Twitter stock with the market none the wiser.”
Shares of the social media platform closed at $34.06 on Tuesday, up 4.3%, but sharply below the levels above $50 where it traded when the deal was accepted by Twitter’s board in late April. The stock added another 1% after the bell.
Musk on Friday, said he was terminating the merger because of the lack of information about spam accounts and inaccurate representations that he said amounted to a “material adverse event.” He also said executive departures amounted to a failure to conduct business in the ordinary course – although Twitter said it removed that language from the merger contract during negotiations.
Twitter also said it did not share more information with Musk regarding spam accounts because it feared he would build a competing platform after abandoning the acquisition.
The lawsuit will be a prolonged legal battle as Twitter seeks to hold Musk to his deal to pay USD 54.20 per share for the company.As per a  reports, the lawsuit against him is 62 pages and has cited roughly 13 of Elon Musk’s tweets. A judge hasn’t yet been assigned to the case. The company hopes to start the case on September 19.
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