Elon Musk vs Twitter (TVTR) – Get the Twitter Inc report.: This is a battle royale.
This is a battle of the titans that will have important implications for mergers and acquisitions going forward.
The richest man in the world and CEO of Tesla (TSLA) – Get Tesla Inc. report. abruptly withdrew his $44 billion bid to acquire a microblogging website he calls the town square of our time. Twitter sued to force Musk to honor his obligation. Therefore, it is not surprising that the two opponents use heavy artillery to destabilize each other. The battle is primarily mental. They must send messages to the enemy to show him that they are ready to do anything to deliver blows that will not let him get up.
Twitter wants a trial by mid-September
It was Twitter that struck first, filing a lawsuit on July 12, just three days after Musk left, in the Delaware Court of Chancery. And in this document, the platform used the quirky entrepreneur’s own tweets. The icing on the cake is that the social network asks for justice for a quick trial.
The platform is asking for a trial in mid-September as the merger agreement between the two parties stipulates that if it is not completed by October 24, each of the two parties can terminate it free of charge.
“Defendants’ ability to terminate the agreement prior to the anticipated termination date of October 24, 2022 is highly limited and carefully limited,” Twitter’s lawsuit reads, which you can find here. “Defendants have no right to terminate unless there is a serious enough breach to cause the termination condition to fail, which, upon proper notice, either cannot be remedied or is not remedied within 30 days of such notice.”
“Twitter has suffered and will continue to suffer irreparable damage as a result of the breaches by the defendants,” the platform claims.
Musk wants trial to begin in 2023
Musk didn’t answer right away. The billionaire missed a few days and just went on the counterattack. In their response to the Twitter complaint, Musk’s lawyers ask that no trial be held until February 13, 2023.
“The timetable proposed by the plaintiff will seriously harm the defendants by depriving them of a significant opportunity to make a discovery, conduct an examination and state their position,” the billionaire’s lawyers wrote in their petition, which can be read in full here.
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“The only suitable date is the debt financing deadline, April 25, 2023. Accordingly, the Defendants respectfully request that the trial be held on or after February 13, 2023, which is an extremely fast timetable for a case of this magnitude, which gives the court time for a reasoned judgment before the true external date,” they argued.
In his letter withdrawing his offer to acquire Twitter, Musk accused the social network’s management of lying about the number of spambots or fake accounts present on the platform. Twitter has always believed that fake accounts make up less than 5% of its users. Musk estimates that figure is at least 20%.
“The core controversy about fake and spam accounts is fundamental to the value of Twitter. It is also extremely rich in facts and experts, requiring considerable time to discover them. Twitter is a social media platform whose self-proclaimed KPI is monetizable daily active users (“mDAUs”),” Musk’s team said in a 16-page statement filed July 15.
“An extreme expedition is also unjustified, as any urgency stems from the plaintiff’s strategic procrastination,” the billionaire’s team said. “Had Twitter either met its contractual obligations promptly, or informed the defendants that it would not, this dispute would have been ripe in early May.”
“The plaintiff’s attempt to place “the burden of expedited proceedings on the defendants and the court cannot be reconciled with [its] inability to act with zeal.”
A hearing has been scheduled by the judge for July 19. This hearing will decide when the trial will take place.
More calmly, the mogul thinks Twitter lacks humor.
“The humorous Twitter bot claims Musk is hurting the company with tweets like the Chuck Norris meme and the poop emoji. Twitter is ignoring the fact that Musk is its second-largest shareholder with a much larger economic stake than the entire Twitter board,” Musk’s lawyers said.
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