Twitter Is Suing Elon Musk Over Merger Termination
It has been confirmed that Twitter will pursue legal action against Elon Musk for terminating the merger agreement. It was announced earlier this year that Elon Musk planned to acquire Twitter for $44 billion, promising some sweeping changes for the social media platform. The idea was to allow more "freedom of speech", meaning people would be able to speak more freely without getting banned. It was never specified what this would look like exactly, however. Reports also suggested that Elon Musk was looking to monetize Twitter in certain ways, but again, nothing was ever concrete and everything was pretty fast and loose. In May, it was confirmed the Twitter and Elon Musk deal was on hold so that Musk could investigate the amount of fake accounts or spam bots on the platform.
Now, today, it has been confirmed that Elon Musk is backing out of the Twitter deal "citing material breach of multiple provisions of the agreement." Twitter chairman Bret Taylor responded to the news on his personal account by stating the Twitter board is committed to closing the deal, which involved Musk purchasing remaining shares in the company at $54.20 per share. Twitter is prepared to sue Musk in the Delaware Court of Chancery to enforce the deal and has expressed confidence in the deal actually going through as a result. As of right now, it remains to be seen how this will all play out. At the time of writing, Musk has yet to respond to Twitter's legal preparations.
The Twitter Board is committed to closing the transaction on the price and terms agreed upon with Mr. Musk and plans to pursue legal action to enforce the merger agreement. We are confident we will prevail in the Delaware Court of Chancery.
— Bret Taylor (@btaylor) July 8, 2022
It's unclear whose side will hold up in court, but it will likely be a dramatic and eventful case unless they choose to settle out of court. Either way, Twitter remains committed to seeing this deal through, regardless of if Elon wants to or not. It's also unknown what he would do if he was required to follow through on the deal, making this a rather interesting and unique situation for the Tesla CEO.
What do you think of Elon Musk backing out of the Twitter deal? Let me know in the comments or hit me up on Twitter @Cade_Onder.
