Twitter Isn’t Taking Elon Musk To Court?
The whole debacle surrounding Elon Musk and Twitter has taken yet another windy turn, which could effect the looming court trial.
If you’ve been following the Twitter and Elon Musk debacle, then you probably know that the Tesla CEO tried to walk away from his offer to purchase the social media company in April. Unfortunately for him, his deal came with a termination agreement, which has the possibility of a massive lawsuit looming over his head. Alongside a high $1 billion termination fee, Musk is in definite hot water. In another twist to the story, Twitter shareholders may pursue a prior deal and remove specific legal fees as well as further lawsuits.
Still, there will be a trial of Elon Musk on October 17th about his decision to walk away from his $44 billion with Twitter. Shareholders of Twitter want Musk to agree to a five-day limit for the trial before they go ahead with the court hearings. Musk’s reasoning for the termination involves alleged fake accounts infiltrating the Twitter platform. Musk claims that the social media company underreports the astronomical level of fake accounts on the site. Currently, there’s no evidence from Musk or any third parties to suggest that Twitter bots are far more numerous than recorded.
Recently, Twitter executives have sent a message to their shareholders for them to hold a vote during an upcoming meeting. The meeting will be held on September 13th and will determine whether the group wants to pursue the merger agreement that Musk is trying to dissolve. However, Twitter CEO Parag Agrawal and Board Chairman Bret Taylor are adamant about closing the deal. They stated that the pair are committed to “closing the merger on the price” Musk had previously offered. The vote will allow the deal to move forward, whether Musk approves of it or not.
Though the world is now aware of the proposal between Elon Musk and Twitter, the Tesla CEO denies that it will be completed. Twitter’s current CEO Agrawal believes that though Musk is attempting to remove himself from the deal, the agreement can still be fulfilled. The company believes that Musk’s sudden “termination is invalid and wrongful” and that it allegedly infringes upon state and federal laws. Though many knew Musk had to pay a fine due to his unjustified termination, the public didn’t know that the social media titan’s board could still pursue the finalization of the deal.
The Twitter letter to shareholders about the September meeting explained the eligibility requirements for voting and the financial gains for those holding stocks. To be eligible, voters must have had Twitter stock by or before July 22nd. If the deal goes through, shareholders will receive $54.20 cash for each Twitter stock an individual has. Twitter’s stock currently is $39 a piece, which is one of Musk’s reasons for attempting to undermine the deal. To the frustration of Musk, Twitter shareholders would get a far more lucrative deal if shareholders vote on pursuing the offer.
Though Musk is presumably a competent businessman, the termination of his Twitter offer shows another side of his public persona. After watching Twitter’s stock prices fall, Musk has attempted relentlessly to end or redesign the finalized deal, which has led to massive pushback from the social media giant’s board and executives.
