The Twitter buyout plan by SpaceX chief Elon Musk has been wrapped in the clouds of uncertainty since the very beginning. On Friday Musk announced that he will abandon the clamorous offer to buy Twitter, after the company failed to provide information about the number of the fake accounts and breaching multiple provisions of the merger agreement. With this, Twitter has now sued Musk for backing away from his agreement to buy the company, trying to force him to complete his $44 billion takeover.
The social media platform has taken it up to a Delaware court and asked it to order Musk to complete the takeover at an agreed $54.20 per Twitter share, said a court filing.
Twitter’s lawsuit contains sharply-worded allegations, “Musk refuses to honour his obligations to twitter and its stockholders because the deal he signed no longer serves his personal interests.”
The suit stated, “Having mounted a public spectacle to put Twitter in play, and having proposed and then signed a seller-friendly merger agreement, 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.”
As part of the April agreement, both Musk and Twitter had settled to pay each other a $1 billion breakup fee if any of the parties was responsible for the deal failing. Twitter could have forced Musk to pay the heavy fee but is moving farther than that, trying to push him to complete the full purchase of $44 billion approved by the company’s board.
“Oh the irony lol,” Musk tweeted after Twitter filed the lawsuit, without providing explanation.