Twitter is suing Elon Musk to force a takeover
A legal battle is underway. On July 12, Twitter filed a lawsuit against Elon Musk to compel Tesla’s boss, who valued the Californian group at $44 billion (44 billion), to comply with his commitment to buy the social network at the end of April under agreed terms. euro). euro).
A judge in a court specializing in business law in the state of Delaware (in the eastern United States) will therefore have to determine whether the multi-billionaire has canceled the purchase agreement that provides for compensation. billion dollar break.
“Musk refuses to fulfill his obligations to Twitter and its shareholders because the contract he signed no longer serves his personal interests”It was written in the complaint filed by Twitter.
The head of Tesla and the founder of SpaceX said on Friday, July 8, in a document sent to the American stock market authorities, that he refused to buy the social network Twitter, accusing the company of providing information. “lying and cheating” about the number of fake or inactive accounts.
Twitter has reiterated in recent weeks that the number of fake accounts on its platform is less than 5%. The multi-billionaire and his team believe that the network is lying, which affects the viability of his business and therefore the value of the company.
“Having made a public spectacle of launching Twitter and offering and signing a vendor-friendly agreement, Musk apparently believes he is free to change his mind, unlike all other parties subject to Delaware contract law. tarnish the company, disrupt its business, destroy the value of its stock and walk away”attacks the document.
Musk accused to act in bad faith
Despite his huge personal wealth, the billionaire had to put together a complex financial package to try to acquire Twitter, especially based on large loans secured by Tesla shares. However, the value of those securities fell after the Twitter takeover bid was announced, with investors noting that the automaker would no longer be a priority for Mr. Musk if he bought the social network.
Twitter accuses Elon Musk of acting in bad faith, accusing him of asking for information about the company, then accusing him of providing it. “misrepresentations” to regulators and investors about its activities.
“He claimed he would ‘hold’ the deal pending the fulfillment of fictitious conditions, failing to meet his commitment to find financing. (…)breached the duty of discretion [et] using confidential information for inappropriate purposesthe complaint says.
Elon Musk “Since the market started to turn, it has been acting against this contract and has violated the contract several times during that time.”, it is also written. Elon Musk’s tactics for social networking a “hypocrisy model”. After the stock market decline, the American company notes that “Musk changed his story, suddenly demanding that you ‘verify’ that spam isn’t a serious problem on the Twitter platform.”
For a company with a blue bird, “Musk’s behavior simply confirms that he wants to get out of the contract he freely signed and hurt Twitter in the process.”.
“oh the irony lol”, Elon Musk responded on Twitter on Tuesday.
Twitter shares are rising again on Wall Street
The proposed takeover has sparked strong reactions among Twitter employees, many of whom have been highly critical of the potential new owner, who has repeatedly denounced the social network as too left-leaning. A self-proclaimed libertarian, Mr Musk is one of several Silicon Valley executives who have partially backed Donald Trump – but he is now a resident of Texas.
On Friday, Bret Taylor, chairman of the platform’s Board of Directors (CA), warned that CA “we have decided to close the deal at the agreed price and terms” and intended to prevail in court. Elon Musk repeatedly attacked and ridiculed the network, which has more than 100 million subscribers.
On Monday, she posted a photo with four photos of herself with the hilarious caption: “They said I can’t buy Twitter. Then they refused to disclose the fake account information. Now they want to sue me to take over Twitter. Now they are forced to disclose fake account information. »
Twitter’s complaint alleges the company “has suffered and will continue to suffer irreparable harm” After Elon Musk broke the contract “Shading Twitter and its activities”.
After hitting a four-month low on Wall Street on Monday, Twitter stock offered a rebound on Tuesday (+4.32% to $34.06).