Best Twitter reversion to a publicly listed corporation: Expert
Evercore ISI senior chief executive Mark Mahaney wonders if the social media giant would be strong enough to force Elon Musk to buy a company on ‘Varney & Co.’
Tesla CEO Elon Musk is likely to file a counter-lawsuit over Twitter soon to drop the $44 billion deal to purchase the social media behemoth, according to a fresh report Monday.
Sources close to the matter told The New York Times that the countersuit was meant to urge a Delaware Court at Chancery judge to provide Musk’s legal team extra time the gather information concerning bots on Twitter – the key reason Musk stated for reneging on the arrangement.
FILE: Tesla CEO Elon Musk talks before presenting the new Model Y at Tesla’s design studio near Hawthorne, Calif., on February 14, 2019. (AP Photo/Jae C. Hong, File / AP Newsroom)
Twitter sued Musk last Tuesday in an effort to force him to finish his $44 billion buyout of the social media firm, accusing him of “outlandish” & “bad faith” activities that caused the platform irreparable injury and “wreaked havoc” on its own stock price.
Musk vowed in April to pay $54.20 a share to buy Twitter, which agreed to those conditions after reversing its earlier opposition to the acquisition. But the two parties have been ready for a legal war since the billionaire indicated a week ago that he had been backing away from his offer to purchase the company.
TWITTER LAWSUIT ‘CREDIBLE THREAT’ For ELON MUSK’S EMPIRE: HINDENBERG RESEARCH
In a complaint with the Delaware Chancery division on Friday, Musk’s lawyers accused Twitter of concealing information concerning bogus accounts and of creating delays, delivering evasive responses, and throwing up technological impediments. The brief also contested Twitter’s desire for an expedited trial, noting that it would take months to collect information from Twitter and also to depose multiple witnesses on the subject of bogus accounts.
FILE: The Twitter emblem is displayed on a mobile phone. (AP Photo/Matt Rourke, File / AP Newsroom)
The lawsuit echoed several other complaints Musk has filed previously, including the assertion that Twitter violated its acquisition agreement when it fired 2 high managers first without alerting Musk.
Musk has 20 days since when Twitter filed his complaint against him, to file his own counterclaims. The first hearing is slated for Tuesday. Twitter’s legal team seeks a four-day trial commencing in September, while Musk is pressing for a later court date.
CLICK HERE To The Get the FOX BUSINESS APP
Delaware Court of Commerce chancellor Kathaleen McCormick is anticipated to evaluate Twitter’s request for an accelerated trial. McCormick would also consider Musk’s countersuit were his legal team to file one.