Musk regrets acquiring Twitter! Twitter sues! Will the acquisition case end up in court?

Musk cancels acquisition of Twitter

It is learned that in a letter released by the US Securities and Exchange Commission (SEC), Musk's lawyer stated that Twitter failed to fulfill the promises made in the $44 billion acquisition transaction and did not provide all the information about the number of fake accounts. Therefore, Musk announced the termination of the agreement to acquire Twitter reached with the Twitter board of directors.

"Mr Musk is exercising his right to terminate the acquisition agreement and abandon the transaction," the lawyer wrote in a letter posted on social networks, a copy of which has been sent to the U.S. Securities and Exchange Commission.

Liquidated damages of $1 billion

At the Qatar Economic Forum last month, Musk said he had decided to shelve the acquisition of Twitter because he questioned the number of fake Twitter users and questioned Twitter's debt. For weeks, experts have been wondering whether Musk intends to withdraw the acquisition or reduce the purchase price. It is reported that the two parties have also agreed on a liquidated damages of $1 billion.

Twitter announces lawsuit against Musk

A few minutes after the news that the world's richest man Musk had suspended the acquisition of Twitter due to "non-compliance" with the signed agreement was released on July 8, Twitter CEO Patrick Dorsey announced that the board of directors would take legal action against Musk. However, Twitter does not want the $1 billion, but wants to complete the acquisition transaction. Twitter Parag Agrawal has expressed his desire to complete the acquisition.

Twitter ensured the data on its fake accounts was correct and had made "numerous concessions" in recent months to give Musk's team access to system data feeds that allowed analysis of tweets.

Twitter's board of directors is "determined to complete the agreement at the price and terms set with Mr. Musk." Dorsey said he will file a lawsuit in the Delaware Court of Chancery and is confident that he has a good chance of winning.

If the acquisition plan falls through, Musk will have to pay Twitter $1 billion in liquidated damages under the agreement, but sources familiar with the agreement confirmed that the world's richest man intends to abide by an exception clause.

It is understood that in less than 24 hours after Musk announced the cancellation of Twitter, Twitter's market value on the New York Stock Exchange shrank by more than 5%, while Tesla's stock price rose by 2.52%.

Editor ✎Estella/

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