Elon Musk announced on Friday that he was terminating the deal to buy Twitter for $44 billion.
Twitter took legal action on Tuesday to force Elon Musk to buy the social network under the terms agreed with the boss of Tesla at the end of April, which valued the Californian group at 44 billion dollars.
A judge from a court specializing in business law, in the State of Delaware, will therefore have to determine whether or not the multi-billionaire can terminate, without fees, to the acquisition agreement. The latter provides for severance payments of a billion dollars, which Elon Musk does not seem to want to settle, as it stands.
Elon Musk's exit strategy is a model of hypocrisy and a model of bad faith, say the platform's lawyers, who seem determined to fight it out.
After putting on quite a show to make Twitter a target, and after proposing and then signing a merger deal, Musk seems to believe he's free — unlike any contracted party. under Delaware law — to change your mind, defame the company, disrupt its business, destroy its stock value and wash your hands of it, they say. #x27;entry in a court document.
The whimsical entrepreneur took a stake in Twitter at the start of the year, before announcing his intention to buy the platform, which he considers too censored, in the interest of democracy.
To justify its unilateral decision, Friday, to end the agreement, its lawyers assured that Twitter had not provided all the information requested on the inauthentic accounts active on the network and minimized the number of spam.
But for the bluebird, Musk's behavior simply confirms that he wanted to get out of a contract he signed freely, and hurt Twitter at the same time.
Oh the irony lol, reacted Elon Musk on Twitter on Tuesday.
On Monday, he posted an image with four photos of himself, hilarious, with this caption: They said I can't buy Twitter. Then they refused to reveal the fake account information. Now they want to force me to take over Twitter in court. Now they are forced to reveal the fake account information.
For several months, the richest man in the world has been increasing attacks and mockery against the network where he is followed by more than 100 million people.
He sharply criticized its content moderation policy, and publicly mocked some executives.
At the height of the dispute over the number of accounts inauthentic, he opposed an emoji in the shape of poop to the arguments of Parag Agrawal, the boss of Twitter.
He claimed to suspend the agreement pending the fulfillment of imaginary conditions, failed in his obligation to find financing […] breached his duty of confidentiality [and] used confidential information to bad ends, list the lawyers of the company.
Mr. Musk did not employ the means necessary to complete the acquisition, they add. Twitter has suffered and will continue to suffer irreparable damage as a result of these breaches.
On Friday, the platform's chairman of the board, Bret Taylor, had warned that the C. A. was determined to conclude the transaction at the price and on the agreed terms and intended to prevail in court.
There is a range of possible outcomes: a negotiated agreement between the parties to avoid litigation, payment of severance pay, enforcement of the contract and a myriad of other possibilities, analyst Dan Ives noted Tuesday.
Different business law experts agree to give the advantage to Twitter in terms of legal arguments, but believe that the social network will suffer lasting damage from this case, whatever the conclusion.
Musk has a black eye and Twitter [and its employees] are living a horror movie, commented Dan Ives. It's a soap opera without a winner.