Twitter Sues Elon Musk to Force $44 Billion Merger

As promised, Twitter today sued Elon Musk in an attempt to force Musk to go through with the $44 billion purchase of Twitter, reports Reuters. Twitter in the lawsuit accuses Musk of trashing the company, disrupting its operations, and destroying stockholder value.

twitter elon musk

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.

Last Friday, Musk told Twitter that he was terminating the deal because of "material breach of multiple provisions of the agreement." Musk has said that he does not believe Twitter's claim that fake or spam accounts represent less than five percent of users.

Musk claimed that Twitter did not comply with its contractual agreements because he was not provided with the relevant business information that he requested about spam account data.

After Musk said that he wanted to call off the merger agreement, Twitter chairman Bret Taylor said that Twitter's board was "committed to closing the transaction" and planned to pursue legal action to enforce the agreement.

Musk initially offered to purchase Twitter for $54.20 per share in April, and Twitter accepted the offer. The deal is worth $44 billion, though Musk and Twitter could settle and call off the purchase if Musk pays a $1 billion+ fine and Twitter accepts.

Top Rated Comments

Danfango Avatar
21 months ago
I don't know who to root for.

On one side of the ring we have a completely demented megalomaniac billionaire slave driver and on the other side we have a media megacorporation that enabled political chaos worldwide.

I think I shall just watch them consume each other then piss on the remains.
Score: 44 Votes (Like | Disagree)
CWallace Avatar
21 months ago
Twitter has little choice but to force the issue if they believe Musk still has the ability (financial backing) to complete the deal because it is by far the best offer they are going to get for the company now and having accepted the deal (via the vote of the shareholders) they are probably legally bound to try and see it through.

In addition to Twitter's suit, I expect it is only a matter of time before we start seeing Class Action suits filed against Musk by stockholders for all the value that has been wiped out these past few months.
Score: 30 Votes (Like | Disagree)
contacos Avatar
21 months ago
I almost admire his attitude of not giving a F


His Tweets in the last 24 hours:

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Score: 24 Votes (Like | Disagree)
JPack Avatar
21 months ago
"I'd say Twitter is well-positioned legally to argue that it provided him with all the necessary information and this is a pretext to looking for any excuse to get out of the deal," said Ann Lipton, associate dean for faculty research at Tulane Law School.

Yep, this much is obvious. You don't go in, agree to a deal, and then back out pretending you don't believe Twitter's data estimates.
Score: 21 Votes (Like | Disagree)
Cameront9 Avatar
21 months ago
The stupid thing is no one that uses Twitter actually wants Musk to buy the thing.
Score: 21 Votes (Like | Disagree)
sw1tcher Avatar
21 months ago

I have to go with Musk on this one. Not because I think he is right mind you, I dont know. I do know I have never used Twitter, never read a tweet and didnt get it when it came out. Im going to post updates on my daily happenings, and people will care???? And I will want to read what other people are doing throughout the day.....everyday???? Ummmm, no. Also the clause of if you back out you have to pay us ONE BILLION DOLLARS. It sounds like a joke.Show me how they have lost A Billion from him not buying, in REAL MONEY. Not fake hypothetical money. ugh
Musk signed a contract. Do you know how contracts work?

It's Musk's fault for signing a sales contract before doing his due diligence.

It's no different than if Twitter tried to back out of the sale because, oh I don't know, they found someone who was willing to pay more than $44 billion ($54.20/share) for the company. Twitter would then have to pay Musk $1 billion.
Score: 21 Votes (Like | Disagree)

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