After billionaire Elon Musk pulled out of the $44bn deal to buy Twitter on Friday, the company is now planning to force the deal to close through legal action.
A letter sent from Elon Musk’s lawyer to Twitter’s chief legal officer on Friday stated that Musk would be pulling out of the deal to buy Twitter.
This came after Musk asked Twitter to fact-check its claims about having only 5% of mDAUs (monetizable daily active users) as spam accounts as part of the contract. Twitter did not inform Musk of this information, which is why he has claimed to have pulled out of this deal.
However, Twitter’s board chair Bret Taylor has said otherwise, stating in a tweet, “The Twitter Board is committed to closing the transaction on the price and terms agreed upon with Mr. Musk”. They also stated that Twitter would pursue Musk in legal action and that Twitter is confident that they “will prevail in the Delaware Court of Chancery.”
The recent events tanked Twitter’s stock, causing it to plummet 11.3% on Monday, or $4.16, closing out at $32.65.
Both Musk and Twitter are now essentially forced to prove their side; Musk agreed to pay Twitter $1bn if he backed out of the deal, and if Twitter can’t show that only 5% of users are mDAUs, they will most likely face accusations of false claims which may further decrease user trust and their already plummeting stock prices.
The two have been going back and forth for almost 3 days already, and it doesn’t look like it’s going to end soon. It’s most likely that this battle is going to end in court, with either Musk being able to back out freely or Twitter suing Musk for a hefty price.
A letter sent from Elon Musk’s lawyer to Twitter’s chief legal officer on Friday stated that Musk would be pulling out of the deal to buy Twitter.
This came after Musk asked Twitter to fact-check its claims about having only 5% of mDAUs (monetizable daily active users) as spam accounts as part of the contract. Twitter did not inform Musk of this information, which is why he has claimed to have pulled out of this deal.
However, Twitter’s board chair Bret Taylor has said otherwise, stating in a tweet, “The Twitter Board is committed to closing the transaction on the price and terms agreed upon with Mr. Musk”. They also stated that Twitter would pursue Musk in legal action and that Twitter is confident that they “will prevail in the Delaware Court of Chancery.”
The recent events tanked Twitter’s stock, causing it to plummet 11.3% on Monday, or $4.16, closing out at $32.65.
Both Musk and Twitter are now essentially forced to prove their side; Musk agreed to pay Twitter $1bn if he backed out of the deal, and if Twitter can’t show that only 5% of users are mDAUs, they will most likely face accusations of false claims which may further decrease user trust and their already plummeting stock prices.
The two have been going back and forth for almost 3 days already, and it doesn’t look like it’s going to end soon. It’s most likely that this battle is going to end in court, with either Musk being able to back out freely or Twitter suing Musk for a hefty price.
