Elon Musk and Twitter are heading to court as the social media company sued the Tesla CEO in the Delaware Court of Chancery on Tuesday after the billionaire stated he was terminating his $44 billion deal to buy the outlet.
In their suit, Twitter expresses that after entering a binding merger arrangement, the entrepreneur “refuses to honor his obligations to Twitter and its stockholders because the deal he signed no longer serves his personal interests.”
CNBC adds that this marks the beginning of a protracted legal battle as Twitter pursues to hold Musk to his agreement to pay $54.20 per share for the social media outlet. However, he looks to get out of the deal because of issues with spam bots or sale procedures.
Twitter adds that Musk’s behavior throughout the process of buying the social network was in “bad faith” and accused the Tesla CEO of operating against the agreement since “the market started turning.”
“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,” Twitter wrote.
“This repudiation follows a long list of material contractual breaches by Musk that have cast a pall over Twitter and its business.”
Eduardo Razo is the Assistant Content Editor for BNM, which includes writing daily news stories on the news media industry. He can be found on Twitter @eddierazo_ or you can reach him by email at eddie1991razo@gmail.com.
