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Twitter Sues Elon Musk, Wants Him To Buy The Social Media Giant

Twitter has filed a 62-page lawsuit against Tesla chief executive Elon Musk as it attempts to force him to go through with his plan to purchase the social media giant for $44 billion.

In the suit, Twitter cites 13 tweets that Musk made in recent months, starting on April 17, 2022, that demonstrate his “infatuation with the service.” Lawyers for Twitter have told a judge in Delaware that Musk should be forced to honor his agreement to pay $54.20 a share for the company, Bloomberg reports.

“Having mounted a public spectacle to put Twitter in play, and having proposed and then signed a seller-friendly merger agreement, Musk apparently believes that he — unlike every other party subject to Delaware contract law — is free to change his mind, trash the company, disrupt its operations, destroy stockholder value, and walk away,” Twitter described in its lawsuit.

Read Also: Elon Musk Bails On Twitter Deal, Claims Company Didn’t Provide Required Information

Twitter has cited a number of reasons how Musk violated the deal, noting that he materially breached his obligation to use his best reasonable efforts to complete the merger, breached the hell-or-high water covenant requiring him to do all things necessary to consummate and finalize financing, and materially breached his obligation to provide Twitter with information regarding the status of debt financing. Twitter also alleges Musk breached obligations to seek Twitter’s consent to make public comments around the deal, breached his agreement not to misuse confidential information, and materially breached an obligation to refrain from unreasonably withholding consent to operational decisions.

In response, Musk claims that Twitter hasn’t “complied with its contractual obligations to provide information about how to assess how prevalent the bots are on the social media service.” He also says that Twitter failed to operate its normal course of business when the deal was being discussed, instituting a hiring freeze and firing many senior leaders.

The social media company adds that “Musk wants out” from the deal due to an estimated $100 billion loss in his personal wealth since November 2021.

“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,” Twitter chairman Bret Taylor said online. “We are confident we will prevail in the Delaware Court of Chancery.”

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