Twitter accuses Elon Musk of “knowingly” violating an agreement to buy the social media giant.
On Monday, Twitter fired back at Mr. Musk, days after Tesla’s CEO revealed his intention to… waive the £36.5 billion acquisition agreement because the social media giant had “failed to fulfill its contractual obligations.”
The company denied it had breached its obligations under the merger agreement in a letter to Mr. Musk, dated Sunday and filed with regulators on Monday,
“Twitter requires Mr. Musk and the other Musk parties to honor their obligations under the agreement, including their obligations to use their respective reasonable efforts to complete and make effective the transactions contemplated in the agreement,” the statement said. letter.
The letter also stated that the merger agreement remained in effect and steps would be taken to close the deal.
The tech giant had previously said it would sue Tesla and… SpaceX CEO already this week to finalize the deal and was “confident” it would win in the courts.
However, Mr. Musk mocked the threat by posting memes that suggested the social media giant should release more information about bots and spam accounts if he sued him.
The company plans to file a lawsuit in Delaware early this week, people familiar with the case told Reuters.
Shares of Twitter fell 11.3% to $32.65, the largest daily percentage drop in more than 14 months.
Legal experts believe the 16-year-old social media company has a strong lawsuit against Mr. Musk, but could opt for renegotiation or settlement rather than a lengthy lawsuit.
The potential unraveling of the £36.5bn deal is just the latest twist in a saga between the world’s richest man and one of the most influential social media platforms.
Much of the drama has played out on Twitter, with Mr. Musk — who has more than 95 million followers — complaining that the company was not living up to its potential as a platform for free speech.
Experts even believe that Mr Musk may be trying to ‘drive’ the road price from Twitter by stepping back from his agreement to buy it.
LAKE : Elon Musk posts memes about being forced to buy Twitter
LAKE : Elon Musk ‘could try to lower Twitter’s price’ by pulling out of deal