TWITTER LAWSUIT AND ELON MUSK DELAY ON $44 BILLION DEAL
By Ronaldson Diete-Spiff, Esq
Twitter recently filed a lawsuit against Elon Musk for refusing to pay $44 billion to acquire the dominant social media platform. The suit is before Delaware’s Court of Chancery, wherein the social media platform accuses Musk of acting dishonestly when negotiating with Twitter and causing a protracted, pricey, and high-stakes conflict.
Although Elon Musk has responded to the allegations contained in the suit, the parties are still far from consummating the million-dollar deal. The parties had earlier concluded plans for the purchase of twitter but the negotiation suffered setbacks when Musk backed out of the deal on the alleged grounds that Twitter failed to provide sufficient information on the number of spam and fake accounts on its site. Twitter has denied the allegations.
It is worrisome that parties are yet to close this multi-million transaction and manage the negotiations and the generated controversies. This protracted negotiation is having an adverse effect on the shares of Twitter. Only time would reveal how the present lawsuit would resolve this debacle.
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