Twitter sends legal notice to Musk; calls termination of acquisition invalid & wrongful

Elon Musk buys Twitter

In today’s episode of Elon Musk v/s Twitter, after receiving a legal notice from Elon announcing the discontinuation of the acquisition agreement, Twitter has now responded with a legal notice declaring that they would enforce Musk to conclude the agreement on decided terms.

Wachtell, Lipton, Rosen & Katz, the law firm representing Twitter, has sent a letter to Elon Musk that mentions “Mr. Musk’s, and the letter also states, “Mr. Musk and the other Musk Parties have knowingly, intentionally, willfully, and materially breached the Agreement other Musk Parties’ purported termination is invalid and wrongful.”

Twitter seems determined to close the deal by consummating and making effective transactions to complete the acquisition and also mentions the company would provide “reasonably requested” information.

Elon Musk discontinued the Twitter acquisition, citing the reason that the platform has failed to provide information on spam and fake accounts and has provided an inflated number for the daily active userbase, according to the motion filed by Skadden, Arps, Slate, Meagher & Flom LLP on behalf of Elon Musk.

Twitter’s process for auditing the inclusion of spam and fake accounts in mDAU, and the process for identifying and suspending spam and fake accounts, were some of the data points that information was requested for. The requested information data points are not limited to these.

Also Read: Twitter introduces CoTweets, its own version for collaborative posts

Citing these reasons, Elon Musk has filed a motion with SEC to terminate the Merger Agreement and abandon the transaction contemplated and has sent out the formal notice. Twitter then appointed the US-based law firm Wachtell, Lipton, Rosen & Katz LLP, to take the legal fight further.

The Twitter Board has now announced it is confident in the merger agreement and intends to close the transaction at 54.20 USD Per Share Price.

The company states, “We are committed to closing the transaction on the price and terms agreed upon with Mr. Musk and plan to pursue legal action to enforce the merger agreement. We are confident we will prevail in the Delaware Court of Chancery”.

The response letter from Twitter concludes with the statement, “Twitter reserves all contractual, legal, and other rights, including its right to specifically enforce the Musk Parties’ obligations under the Agreement.”


Comments