Elon Musk announced on Friday that he was ending the deal to buy Twitter for $44 billion.
Twitter sued Tuesday to force Elon Musk to buy out the social network according to the terms agreed with the boss of Tesla at the end of April, which valued the Californian group at 44 billion dollars.
A judge from a court specializing in corporate law business, in the State of Delaware (eastern United States), will therefore have to determine whether or not the multi-billionaire can terminate the acquisition agreement, free of charge.
The latter provides for severance payments of one billion dollars, which Elon Musk does not seem to want to settle, as it stands.
The strategy of Elon Musk's exit is a model of hypocrisy and a model of bad faith, say the platform's lawyers, who seem determined to fight it out.
After putting on quite a show to target Twitter, and proposing and then signing a merger deal, Musk seems to believe he's free — unlike any contracted party. under Delaware law — to change your mind, defame the company, disrupt its business, destroy its stock value, and wash your hands of it, they say of entry in a court document.
The whimsical entrepreneur took a stake in Twitter at the start of the year, before announcing his intention to buy the platform, which he considers too censored, in the interest of democracy.
To justify its unilateral decision on Friday to end the agreement, its lawyers assured that Twitter had not provided all the information requested on the accounts active on the network and minimized spam.
But for the bluebird, Musk's behavior merely confirms that he wanted to get out of a contract he signed freely, and hurt Twitter in the process.
Oh the irony lol, Elon Musk reacted on Twitter on Tuesday.
On Monday, he posted an image with four photos of himself, hilarious, with this caption: They said I can't buy Twitter. Then they refused to reveal the information about the fake accounts. Now they want to force me to take over Twitter in court. Now they are forced to reveal information about fake accounts.
For several months, the richest man in the world has been increasing attacks and mockery against the network where he is followed by over 100 million people.
He sharply criticized its content moderation policy, and publicly mocked some executives.
At the height of the row over the number of inauthentic accounts, he pitted a poo emoji against arguments from Twitter boss Parag Agrawal.
He claimed to suspend the& #x27;agreement while waiting to meet imaginary conditions, failed in its obligation to find financing […] breached its duty of confidentiality [and] used confidential information for bad purposes, list the company's lawyers.
Mr. Musk did not employ the means necessary to complete the acquisition, they add. Twitter has suffered and will continue to suffer irreparable damage as a result of these breaches.
On Friday, the platform's Chairman of the Board, Bret Taylor, had warned that the Board was determined to complete the transaction at the agreed price and terms and intended to prevail in court.
There is a whole range of Possible outcomes: A negotiated settlement between the parties to avoid trial, payment of severance pay, contract enforcement and a myriad of other possibilities, analyst Dan Ives noted Tuesday.
Various business law experts agree to give Twitter the advantage in terms of legal arguments, but believe that the social network will suffer in the long term of this case, regardless of the outcome.
Musk has a black eye and Twitter [and its employees] are living a horror movie. eur, commented Dan Ives. It's a soap opera without a winner.