It’s time to see how good Elon Musk’s pull out game really is.
Twitter is suing Elon Musk to force him to complete his $44 billion acquisition of the company. Musk recently announced last Friday that he would be backing out of the transaction due to Twitter not releasing statistics about spam accounts.
This lawsuit, which is being filed in the Delaware Court of Chancery, begins “Musk refuses to honor his obligations to Twitter and its stockholders because the deal he signed no longer serves his personal interests.”
Twitter claims that Musk is creating a false narrative about spam accounts to cover up the fact that he no longer has interest in buying the company due to financial reasons. While Musk agreed to the deal back in April, Tesla and the rest of the stock market took a hit in a May stockholder selloff which undoubtedly cost Musk some money. Twitter believes that this loss of income is responsible for him backing out. They write in their lawsuit, Musk “has been acting against this deal since the market started turning, and has breached the merger agreement repeatedly in the process.”
Despite the lawsuit, Musk has alleged that Twitter has already breached the contract in their own right by firing two top executives as well as one-third of its talent acquisition team.
Twitter’s lawsuit states the company “has suffered and will continue to suffer irreparable harm” as a result of Musk’s contractual violations. If a judge rules in favor of the social media company, Musk would be required to pay the agreed $54.20 per share and obtain sole ownership of the company.