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Twitter sues Elon Musk for backing out of $44 billion deal to buy company

 1 year ago
source link: https://finance.yahoo.com/news/twitter-sues-elon-musk-backing-213529496.html
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Twitter sues Elon Musk for backing out of $44 billion deal to buy company

Terry Collins, Sara Edwards and Bailey Schulz, USA TODAY
Wed, July 13, 2022, 8:01 AM·3 min read

Twitter filed a lawsuit Tuesday against Elon Musk after the billionaire backed out of a $44 billion agreement to buy the embattled social media company.

Musk agreed in April to buy Twitter but he filed papers Friday with the SEC to walk away from the acquisition agreement. Now, a Delaware court could determine whether he has to buy the company that's seen both its stock and reputation plummet.

In its lawsuit, Twitter argues that Musk signed a binding agreement to a deal and he can't simply abandon it.

"Musk refuses to honor his obligations to Twitter and its stockholders because the deal he signed no longer serves his personal interests," Twitter argues in the suit. "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."

In classic Musk fashion, he responded to Twitter's lawsuit with a tweet saying "Oh the irony lol."

Oh the irony lol

— Elon Musk (@elonmusk) July 12, 2022

More: Elon Musk may be sued by Twitter; Donald Trump weighs in on deal

Elon Musk says it’s time for Donald Trump to ‘sail into the sunset’ after getting ripped at Trump rally

On Sunday, Twitter's lawyers said in a letter that Musk's attempt to terminate the deal was "invalid and wrongful," and that he "knowingly, intentionally, willfully and materially breached" a deal to buy the platform.

Twitter's suit comes after Musk accused the company of handing over information about the number of spam bots on the platform. Musk repeatedly bashed Twitter saying that he didn't believe its public statements that about 5% of its active users are bots.

Twitter says otherwise and said it has provided Musk and his team "far more information" than they are entitled to under the merger agreement.


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