Twitter did something Elon Musk didn’t: keep his promise to take him to court for violating the announced and signed agreement to acquire the microblogging and social networking site.

Musk’s legal team sent a letter on Twitter last week stating its intention to withdraw from the deal, and the reaction was as expected. Twitter Chairman Bret Taylor then announced that the company was still “engaged” to close the deal on terms previously agreed upon by both parties and otherwise “I would file legal action to enforce the merger agreement”.

Finally, the technological soap opera of the years is taking a new direction. Twitter filed suit in a Delaware commercial litigation court for breach of contract to buy the social network for $44,000 million at a substantial premium that valued the stock at $54.20.

Twitter takes Elon Musk to court

The social network is very hard on Musk. “In April 2022, Elon Musk signed a binding merger agreement with Twitter and promised to do everything in his power to close the deal. Now, less than three months later, Musk is refusing to honor his obligations to Twitter and its shareholders because the deal he signed no longer serves his personal interests.”can be read on demand.

“After Musk made a public show to market Twitter and drafted and subsequently signed a seller-friendly merger agreement, he clearly believes that, unlike any other party subject to Delaware contract law, You are free to change your mind, to destroy societydiscontinue operations, destroy shareholder value and walk away.”they assure.

Twitter calls Musk’s withdrawal “a model of hypocrisy” and rejects the argument that it was Twitter itself that violated the terms of the agreement by failing to prove that the number of fake accounts on the platform matched the company’s estimates. You already know that Twitter says that less than 5% of users are fake and spam accounts, which the mogul considers an understatement.

Twitter denies this: “Musk made the call to ‘beat the spam bots,’ but when the market tanked and the price deal became less attractive, Musk changed his story and suddenly demanded ‘verification’ that spam wasn’t spam.” it was serious. platform problem»they indicate.

Another series is part of the lawsuit “serious breach of contract by Musk that tarnishes Twitter and its business” Like Nondisclosure Agreements about internal spam estimates and other data Musk discovered with his tweets.

How will the soap opera end?

legal experts he believes Twitter will eventually “win” the lawsuit. Court in Delaware it has rarely ruled in favor of a party seeking to back out of a signed commitment. And Twitter seems to have a pretty strong case. Only Musk’s own tweets need to be revealed. But hey, anything can happen in that case. It will be difficult for a court to force Musk to buy the company, but it will be difficult for him to impose high damages for non-compliance, which some sources put at $1,000 million.

Small change for the richest guy in the world who has been around for quite some time he believes in himself above good and evil. Elon Musk remains one of the most important voices in the technology business today. And it is no less, because the co-founder of PayPal is the CEO of Tesla Motors, which revolutionized the automotive industry, is the president of SolarCity (the largest supplier of solar systems in the United States), is the director of technology at SpaceX (in the top-3 of a private survey space) and has significant investments in other companies such as biotech firm Halcyon Molecular.

But even he cannot withdraw from the trade agreement signed and announced to the four winds without consequences. Not without destroying Twitter and its shareholders…