Twitter sues Musk to force him to buy the company

Twitter denounced billionaire Elon Musk this Tuesday (12) in a court specializing in commercial disputes in the United States to force him to buy the company, after he notified last week of its intention to break the deal.

The technology company has filed a lawsuit in the Delaware Court of Chancery, as it had threatened last Friday, when Musk told the regulator from the US stock market who wanted to cancel the acquisition agreed in April for approximately US$44 billion due to an alleged breach of contract.

According to the complaint , analyzed by the Efe Agency, Twitter accuses Musk of “criticizing the company, altering its operations, destroying shareholder value”, in addition to a “long list of contractual breaches that obscured” his business, and asks that the entrepreneur be forced to comply with the agreement.

Musk said Friday, in a letter to the company’s legal board and filed with the Val Commission U.S. Securities and Exchange Commission (SEC), which was canceling the purchase of Twitter, arguing that the technology company provided it with “false and misleading” information during the negotiation and that it did not provide it with data that it considers essential to close the deal. transaction.

The businessman’s complaints refer mainly to the number of fake accounts or spam (bots) on the social network, which according to Twitter represent less than 5% of the total, a number that the man The world’s richest man began to question almost immediately after announcing the purchase in April.

The tech company claimed on Tuesday that buying Twitter no longer serves Musk’s “personal interests,” it said. his exit strategy a “model of hypocrisy” and accused him of acting “in bad faith”, revealing months of disagreements and assuring that he responded to the businessman’s requests.

“Since signing the contract purchase, Musk has repeatedly disqualified Twitter and the pact, creating the commercial for Twitter and downward pressure on its share price”, the company wrote in the complaint, claiming that it suffered “irreparable damage”.

The company also highlights that the entrepreneur, instead of bear the “cost of the fall” in the financial market that occurred in recent months, “as required by the agreement”, tries to pass this onus on to shareholders, which reflects their “disdain”, according to the document.

For many analysts, the bot issue is simply the excuse that Musk sought to back out of an operation that seemed increasingly ruinous: Twitter is already quoting below US$ 35, far from the US$ 54,20 per share that Musk agreed to pay.

In turn, Tesla, which is “the anchor of wealth” of the businessman, in the words of Twitter in the complaint, has lost about a third of its capitalization since the beginning of the year.

Back to top button