Twitter and its chair members are not having it, and they revealed online that legal action would take place if Elon Musk will not push through with buying the social media company in its recent deal. Almost everything is in place with the Twitter deal between Musk and the company, but there was a hindrance here as essential matters were left unknown to the Tesla CEO.
Bret Taylor: Twitter to Sue Elon Musk if Deal Gets Canceled
(Photo : Unsplash/Joshua Hoehne)
According to a statement by Twitter's chairman, Bret Taylor, there would be legal action should the deal get canceled or not push through in the future. Twitter's team intends to push through with the case, and the company would enforce its hand to continue with the deal and merger as part of the initial sale.
According to The Verge, Taylor released this statement shortly after Musk's team went to the Securities and Exchange Commission (SEC) to file their intent to withdraw from the sale. Nevertheless, Taylor's statement is a powerful one as it claims to have the upper hand that the company will prevail with the law on this deal.
Read Also: Elon Musk is Cancelling the Twitter Deal, As Confirmed by a Twitter Chairman
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
Is Elon Musk Breaching its Twitter Sale Agreement?
Musk signed a binding agreement regarding the deal with Twitter, but there was once a dispute where the tech CEO discovered several undisclosed information that came with the company in this deal. It seems that both have breaches on their sides regarding this Twitter sale.
If Musk truly opts out now, there would be a legal battle between Musk and Twitter.
Elon Musk and Twitter
Elon Musk's preferred platform to advertise Tesla and bring news regarding his different companies, including his personal life and opinions, is Twitter, and the CEO wanted to be a part of it before. There are many things that Musk would change with Twitter, and one of them is being a platform that would bring free speech to all.
To do that, Musk will make the company private, and it would bring back Twitter's early days when it was operating a social media that made its own rules and allowed the public to focus on what they wanted. However, there would still be some prohibitions as there are specific laws that may penalize them for the public information they share.
Now, Musk's camp filed their case on the SEC regarding their backing out of the deal, and it is something that Twitter is not letting go.
A binding agreement that Musk and his camp signed will likely hold a case against their team, as the Twitter sale is something that the board already decided upon and made peace. Future legal proceedings may occur if Musk opts out of the Twitter sale, and there would be a significant exchange between them and the social media company.
Related Article: Twitter Sale: Elon Musk Cancels Deal? Reports Claim CEO is Breaking Free, Venture 'in Peril'
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Written by Isaiah Richard
