Tesla CEO Elon Musk, shockingly, has dumped his $44B deal to buy Twitter. As per the legal experts, Twitter Inc. has a strong legal case against Elon Musk abandoning his $44 billion plan to buy the US social media business. Though Musk might plan to settle the matter outside the court.
There’s a high bar set for the acquirers to cancel the deala, by the Delaware courts where the issue between the two parties is scheduled for hearing. However, target corporations frequently decide against a lengthy legal battle that may drag on for many months in favour of the security of a re-negotiated arrangement at a lesser price or financial compensation.
As per Elon Musk, Twitter has not fully disclosed the amount of phoney or spam accounts operated by bots on its network. He requested Twitter in May to provide an evidence to prove that the amount of bots are less than 5%.
Though Parag Agrawal, the CEO of Twitter, confirmed as much, but Musk disputed the figures and demanded proof. He consequently had access to Twitter’s “firehose” of unprocessed data. There are more than 500 million tweets posted every day on Twitter. Though, in the legal battle, as per the analysts, the Twitter has an edge and it may claim that it didn’t breach any agreement.
Early in April, Musk shocked the social media community by revealing that he had a 9% investment in Twitter and intended to use the board to exert control over the firm. He later had a change in plan, choosing to buy the business and take it private. It seemed dubious that his purpose was to turn Twitter into an environment that promotes free expression.
