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Tuesday, March 28, 2023

Elon Musk to Countersue Twitter in Attempt to Scrap $44B Buyout

Elon Musk to Countersue Twitter in Attempt to Scrap $44B Buyout – According to a source familiar with the case, Elon Musk intends to sue Twitter in the coming days in his latest effort to back out of his $44 billion deal to purchase the social networking giant.

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According to sources, Musk’s lawyers are trying to persuade the Delaware Court of Chancery judge to give them extra time and authority to collect information regarding Twitter bots. A protracted legal dispute may also potentially hurt the company’s stock, giving Musk additional negotiating power to reduce the price of Twitter’s acquisition.

The information comes less than a week after Twitter filed a lawsuit against Musk in Delaware, claiming that the businessman agreed to purchase the platform before trying to “trash the company, disrupt its operations, destroy stockholder value, and walk away.” From last Tuesday, when Twitter filed its lawsuit, Musk has 20 days to submit his own counterclaims.

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Musk has argued that he is entitled to terminate the agreement since Twitter hasn’t given him enough information regarding fake accounts on the site, and Twitter wants the court to order him to buy Twitter at the agreed-upon price of $54.20 per share.

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Tuesday is the date of the first hearing in Twitter’s suit, at which Delaware Court of Chancery chancellor Kathaleen McCormick is anticipated to comment on Twitter’s request for an expedited trial.

Musk wants the trial to begin no earlier than February 2023, but Twitter’s attorneys are asking for a four-day trial beginning in September. Given the size of the transaction and the potential consequences of Musk’s reluctance to comply, several legal experts believe the Court of Chancery won’t order Musk to purchase Twitter. 

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