Elon Musk will never be Elon Musk without memeing any of his issues.
After canceling his Twitter acquisition deal, the owner of Tesla and SpaceX tweeted a meme of himself.
The billionaire also asserted that Twitter would have to reveal "bot info in court" after the social media giant announced its plans to sue Musk.
— Elon Musk (@elonmusk) July 11, 2022
It All Started With Bots
The amount of bots on Twitter has been the heart of the conflict between Musk and the social media company ever since he put the deal "on hold." In fact, this was also mentioned in the first press statement that Musk issued when he decided to buy the company.
He has since claimed that Twitter's statistics on bots are inaccurate. When CEO Parag Agrawal explained how Twitter assesses fraudulent accounts in a long thread, Elon Musk replied with a poop emoji.
To counter Musk, Twitter has organized a legal team. This team includes well-known names in merger law, such as Wachtell, Lipton, Rosen & Katz LLP. Lipton is a renowned Delaware law firm with a long history of defending corporations found to have violated fiduciary duty lawsuits and broken merger agreements.
Twitter will be taking the lawsuit in Delaware, which is the state with authority over the transaction, as soon as Monday.
Associate professor of law at Boston College Brian Quinn predicts that they will likely ask the court to issue an compelling injunction Musk to precisely carry out his obligations under the contract.
The Agreement
According to the terms of the agreement, the company may ask a judge for "particular performance," which would compel Musk to pay the $54.20 per share he promised in April to buy Twitter. A $1 billion break fee might also be demanded from Musk by the company if he abandons the project, violating the terms of the contract.
Quinn anticipated that Musk's legal defenses would fall short. In his letter on Friday, July 8, Musk made three broad assertions, such as Twitter violating the agreement by failing to provide sufficient information on spam accounts. Secondly, he claimed that Twitter misrepresented the number of spam accounts in its disclosure requirements to the US financial watchdog.
Lastly, he claimed that Twitter violated the contract after failing to consult with Musk when senior employees were laid off.
Musk has also sent Twitter "increasingly baroque requests" for bot data, according to Bloomberg analyst Matt Levine. Twitter responded to Musk's earlier claims that the firm was trying to deny his right to information with real-time data and API details, as noted by The Independent.
While investors are anticipated to consider legal action if the acquisition fails at $54.20 per share and sue for the gap between the sale price and the current stock price, analysts have speculated that Musk may utilize the court dispute to negotiate a lower price for Twitter.
As of now, Twitter is valued at $36.81 per share.
Related Article: Twitter Bans Employees From Talking or Tweeting About Elon Musk's Failed $44 Billion Purchase of the Company
This article is owned by Tech Times
Written by Joaquin Victor Tacla
