Twitter is contemplating a legal action against Elon Musk over his decision to terminate $44 billion deal to acquire the social media company.
According to The Hill, a microblogging site, Twitter Inc has hired U.S. law firm Wachtell, Lipton, Rosen & Katz LLP to sue Elon Musk and force him to complete the $44 billion acquisition deal.
— The Hill (@thehill) July 11, 2022
In early April, Musk became the largest individual stakeholder of the social media platform after he acquired its 9.2 per cent share. On April 25, 2022, it was announced that Musk will acquire Twitter’s ownership in a $44 billion deal.
In a letter to Twitter’s board, Musk lawyer Mike Ringler complained that his client had for nearly two months sought data to judge the prevalence of “fake or spam” accounts on the social media platform.
“Twitter has failed or refused to provide this information. Sometimes Twitter has ignored Mr. Musk’s requests, sometimes it has rejected them for reasons that appear to be unjustified, and sometimes it has claimed to comply while giving Mr. Musk incomplete or unusable information,” the letter said. Musk also said the information is fundamental to Twitter’s business and financial performance, and is needed to finish the merger.
In response, the chair of Twitter’s board, Bret Taylor, tweeted that the board is “committed to closing the transaction on the price and terms agreed upon” with Musk and “plans to pursue legal action to enforce the merger agreement. We are confident we will prevail in the Delaware Court of Chancery.” The trial court in Delaware frequently handles business disputes among the many corporations, including Twitter, that are incorporated there.
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