Elon Musk faces legal battle with Twitter after backing out of $44B deal
WHAT YOU NEED TO KNOW:
- Elon Musk on Friday terminated his agreement to buy Twitter.
- Musk reached a deal with Twitter in April to buy the company for $44 billion.
- The Tesla CEO likely faces a long battle ahead with Twitter in court, according to legal experts.
Twitter is organizing a team of high-profile legal experts to sue Elon Musk for breaking off his $44 billion deal to buy the platform, according to Bloomberg News on Sunday.
The social media platform aims to file suit against the billionaire early this week in Delaware where the company’s corporate home lies, the news outlet reported.
Twitter has hired the service of the law firm Wachtell, Lipton, Rosen & Katz, known for its work in mergers.
If the social media company is successful, it could force Musk to pay a $1 billion breakup fee, according to Bloomberg.
The Telsa CEO backed out of the agreement after Twitter failed to provide information about fake accounts on the platform, court documents filed by Musk’s team claimed.
His attorneys alleged in a Friday court filing that “Twitter is in material breach of multiple provisions” of the buyout deal, and that the platform “appears to have made false and misleading representations upon which Mr. Musk relied when entering into the Merger Agreement.”
Musk has retained Quinn Emanuel Urquhart & Sullivan, a high-profile law firm that he’s worked with before, according to Bloomberg.
The case is expected to be tried in a chancery court. The judge, who should be an expert in business law, will hear arguments without a jury.
In April, Musk got a $44 billion deal to take over Twitter, but he put the buyout on hold until the social media company presented proof that spam and bot accounts were fewer than 5% of users who see advertising on the site.
Insiders speculated that the billionaire backed out on the deal because he is now paying a massive premium for Twitter as a result of the tech stock correction.
Source: New York Post
July 12, 2022 at 7:48 am
Elon Musk’s attemp to buy twiter has exposed the social platform for it’s liberal censorship of republican ideology., and at the same time exposed all the major social networks for the same censorship. Especially Facebook and Tictok. Liberal socialism is an ideology that many millions of young people don’t fully understand. People won’t miss freedom until it’s stripped away from them. The misconception liberals have that abortion is a constitutional right, for example, is actually a decision made by the people. ( the States ) If this country was governed by socialism, abortion would be an issue that was solely in the hands of the government. So all you young people better think about that. Issues like abortion could be in total control of whoever is in charge. Elon Musk’s maneuver that exposed an unconstitutional censorship of free speech within the major social networks is extremely beneficial in maintaining freedom and control by the people, not tyrants of socialism.