On Friday, Elon Musk backed out of his $44 billion deal with Twitter, leading to Twitter Inc. asking the Delaware court to order Musk to go on with the deal.
Musk claimed to have backed out of his deal with Twitter because Twitter allegedly violated the agreement by failing to respond with the appropriate information on fake and or spam accounts.
Musk had failed to disclose his 9% share on Twitter in time leading to Twitter now filing a lawsuit against Musk with Twitter’s legal team stating that Musk is the one in the wrong due to his violation of their agreement.
As of now, Twitter and Musk are taking this issue to court with Twitter seeing if they can force the deal to happen, or if they can at least take the $1 billion breakup fee as part of their original agreement.
The day that Musk struck the deal with Twitter, Twitter stocks had at first rose above the norm, on to later drop down to 34% below their usual, a full 37% below Musk’s offering price at $54.20 per share.
This case, however, may attract the ire and attention of the US Securities and Exchange Commission (SEC) as they do not like it when potential stock buyers create a false market in which they propose a deal, only to back out of it. The market’s regulators had previously fined Musk and managed to force him to step down as Tesla chair due to him misleading investors even as he planned to take the car company private.
Musk claimed to have backed out of his deal with Twitter because Twitter allegedly violated the agreement by failing to respond with the appropriate information on fake and or spam accounts.
Musk had failed to disclose his 9% share on Twitter in time leading to Twitter now filing a lawsuit against Musk with Twitter’s legal team stating that Musk is the one in the wrong due to his violation of their agreement.
As of now, Twitter and Musk are taking this issue to court with Twitter seeing if they can force the deal to happen, or if they can at least take the $1 billion breakup fee as part of their original agreement.
The day that Musk struck the deal with Twitter, Twitter stocks had at first rose above the norm, on to later drop down to 34% below their usual, a full 37% below Musk’s offering price at $54.20 per share.
This case, however, may attract the ire and attention of the US Securities and Exchange Commission (SEC) as they do not like it when potential stock buyers create a false market in which they propose a deal, only to back out of it. The market’s regulators had previously fined Musk and managed to force him to step down as Tesla chair due to him misleading investors even as he planned to take the car company private.
