Twitter Hits Back at Elon Musk over Breach of Obligations
Twitter fired back at Elon Musk on Monday, accusing him of “knowingly” breaching an agreement to buy the social media company, just days after the Tesla Inc CEO attempted to back out of the $44 billion deal.
Twitter stated in a letter to Musk dated Sunday and filed with regulators on Monday that it had not breached its obligations under the merger agreement, as Musk indicated on Friday in his decision to terminate the deal.
“Twitter has not experienced and is unlikely to experience a Company Material Adverse Effect,” it added.
The company had planned to sue Musk to force him to complete the transaction, a threat Musk dismissed on Monday. According to people familiar with the situation, Twitter plans to file a lawsuit in Delaware early this week.
Twitter also stated in the letter that the merger agreement was still in place and that it would take steps to complete the transaction.
On Monday, Twitter’s stock closed down 11.3 percent at $32.65 per share, a 40% discount to Musk’s $54.20 bid and the largest daily percentage drop in more than 14 months. In extended trading, they gained about 1%.
“The board of Twitter must consider the potential harm to its employee and shareholder base of any additional internal data exposed in litigation,” said Benchmark analyst Mark Zgutowicz.
According to Francis Pileggi, a corporate litigator with Lewis Brisbois in Delaware, if Musk defends against Twitter’s lawsuit by claiming the company misrepresented the number of fake accounts, he could put bots front and center in the litigation, AFP reports.
“I’d be surprised if he can’t get that information,” Pileggi said.
Pileggi believes that if the number of fake accounts exceeds Twitter’s estimate of 5%, it could lead to price negotiations for the social media platform.
According to legal experts, the 16-year-old social media company has a strong legal case against Musk, but it may choose renegotiation or settlement over a lengthy court battle.
“We believe Elon Musk’s intention to terminate the merger is based on the recent market sell-off rather than Twitter’s ‘failure’ to comply with his requests,” Jefferies analyst Brent Thill wrote in a note.
“We would not be surprised if the stock found a floor at $23.5 in the absence of a deal.”
Apart from this, if you are interested, you can also read Entertainment, Numerology, Tech, and Health-related articles here: Webtoon XYZ, Fastest VPN for Android, IFVOD, XXXX Dry Review, Highest Grossing Indian Movies of all Time, Highest Grossing Movies of All Time, Rush Limbaugh net worth, Gotham Season 7, Parag Agrawal Net Worth, Tara Reid Net Worth, Blonde Trailer, Fastest VPN for PC, WPC18, Highest Paid CEO in India 2022, Highest paid athletes 2022, My5 TV Activate, Kissmanga, WPC16, Highest Paid CEO 2022, Grey’s Anatomy Season 19, WPC15, Alexa.com Alternatives,
The Resident Season 6, Kraven The Hunter, One Punch Man season 3, The Resident Season 5, Yellowstone season 5, Ozark season 4 part 2, How to Remove Bookmarks on Mac, Outer Banks Season 4, How to block a website on Chrome, How to watch NFL games for free, DesireMovies, How to watch NFL games without cable, How to unlock iPhone, How to cancel ESPN+, How to turn on Bluetooth on Windows 10, Outer Banks Season 3,
6streams, 4Anime, Moviesflix, 123MKV, MasterAnime, Buffstreams, GoMovies, VIPLeague, How to Play Music in Discord, Vampires Diaries Season 9, Homeland Season 9, Brent Rivera Net Worth, PDFDrive, SmallPDF, Knightfall Season 3, Crackstream, Kung Fu Panda 4, 1616 Angel Number, 333 Angel Number,
666 Angel Number, 777 Angel Number, 444 angel number, Bruno Mars net worth, KissAnime, Jim Carrey net worth, Bollyshare, Afdah, Prabhas Wife Name, Project Free TV, Kissasian, Mangago, Kickassanime, Moviezwap, Jio Rockers, Dramacool, M4uHD, Hip Dips, M4ufree, Fiverr English Test Answers, NBAstreamsXYZ, Highest Paid CEO, The 100 season 8, and F95Zone.
Thanks for your time. Keep reading!