Twitter stock is down around 7% on its first day of trading since Elon Musk late Friday followed through on a threat to walk away from his agreed-upon $44 billion purchase of the beleaguered social…
late Friday followed through on a threat to walk away from his agreed-upon $44 billion purchase of the beleaguered social media platform.
Twitter threatened legal action to hold Musk to his word and has now hired big name U.S. law firm Wachtell, Lipton, Rosen & Katz LLP as it prepares to take the case toIn an SEC filing Friday, Musk attorneys wrote that he is terminating the $54.20-a-share merger because, “to the extent to which Twitter has underrepresented the number of false or spam accounts on its platform, that may constitute a Company Material Adverse Effect” under the terms of the agreement.
Twitter responded that its Board of Directors“ is committed to closing the transaction at the price and terms agreed upon with and plans to pursue legal action to enforce the merger agreement. We are confident we will prevail in the Delaware Court of Chancery.” Chairman Bret Taylor first tweeted the statement Friday and it was retweeted by CEO Parag Agraway, CFO Ned Segal, Vijava Gadde, chief legal officer and board members Patrick Pichette and Martha Lane Fox.
Musk began threatening to walk away from the late-April deal back in May. Tesla stock was falling and the billionaire Tesla founder kept raising the bot, or fake account, issue. Twitter insists it has provided sufficient information. Musk’s deal includes a $1 billion breakup feel but Twitter says he needs a good reason for walking way, like financing falling through, otherwise the deal remains is legally binding. Now it looks like a Chancery Court judge will decide.
In a mocking tweet below, Musk stocked a series of statements next to photos of himself laughing. “They said I couldn’t buy Twitter. Then they wouldn’t disclose bot info. Now they want to force me to buy Twitter in court. Now they have to disclose bot info in court.”
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Elon Musk hits back at Twitter's court threat in the most Elon Musk way possibleElon Musk mocked Twitter's efforts to force him to purchase the company -- in a tweet, of course.
Read more »
Elon Musk No Longer Wants To Buy Twitter, Will Be Sued To Take The DealMany are pointing at Musk for not having done due diligence before agreeing to the deal, but he argues Twitter didn’t provide fake account data quickly enough.
Read more »
Elon Musk Backs Out of $44 Billion Deal to Purchase Twitter: DetailsBillionaire Elon Musk initially announced in April his intentions to buy social network Twitter before putting plans on hold — read more
Read more »
Elon Musk to Twitter: I Want Out of the DealThe billionaire is accusing the social media company of breaching their merger agreement, while Twitter threatens to sue to complete the $44 billion transaction.
Read more »
Elon Musk stays quiet on Twitter deal at Sun Valley: ReutersElon Musk reportedly stayed quiet on terminating his $44 billion deal to buy Twitter during speech at the Sun Valley conference
Read more »
Twitter, Elon Musk Set for Unprecedented Legal Battle Over Deal CollapseElon Musk, Twitter set for legal slugfest after billionaire moved to back out of $44 billion purchase of social-media platform
Read more »