Twitter, one of the world’s largest social networking companies, has reportedly hired the law firm Wachtell, Lipton, Rosen & Katz to sue billionaire Elon Musk after he pulled out of the $44-billion acquisition deal on Friday.
The CEO of Tesla said that the company failed to provide information about fake accounts on the platform. In response, the company said it would sue to complete the deal. In response, Musk posted a meme on Twitter in which he details the events involving the deal in a lighthearted manner and what is likely to happen.
— Elon Musk (@elonmusk) July 11, 2022
According to Reuters, Wachtell, Lipton, Rosen & Katz was one of the legal advisers for Musk’s plan to take Tesla private in 2018.
The Chairman of the Twitter Board tweeted that they are confident that they will prevail in the Delaware Court of Chancery.
The Twitter Board is committed to closing the transaction on the price and terms agreed upon with Mr. Musk and plans to pursue legal action to enforce the merger agreement. We are confident we will prevail in the Delaware Court of Chancery.
— Bret Taylor (@btaylor) July 8, 2022
One Twitter shareholder laid a complaint in California in May, claiming that the Tech billionaire manipulated the share price with his tweets about spambots on the app. The complaint said that Musk brought up the chat about fake accounts to lower the stock price so that he could renegotiate the acquisition price.
According to Business Insider, Twitter stock dropped 4% in pre-market trading on Friday after the media reported on the news about Musk pulling out of the deal.
“Twitter has and will continue to cooperatively share information with Mr Musk to consummate the transaction in accordance with the terms of the merger agreement. We believe this agreement is in the best interest of all shareholders. We intend to close the transaction and enforce the merger agreement at the agreed price and terms,” a Twitter spokesperson said in June about sharing the necessary information with Musk, which he claims the company is failing to do.
By Zintle Nkohla
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