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Twitter, Elon Musk head to court for first time regarding $44B acquisition

Tesla CEO Elon Musk and Twitter are slated for their first courtroom showdown Tuesday as the microblogging site seeks to force Musk to complete his $44 billion takeover on an expedited timeline.

Attorneys for each side will begin arguments about the trial’s schedule in the state of Delaware as Twitter seeks proceedings in September while the world’s richest man wants them in February. Arguments will be heard by Chancellor Kathaleen St. J. McCormick.

Musk originally pledged in April to pay $54.20 per share for Twitter in a deal that would have come with a $44 billion price tag. But he has since reneged concerning claims that Twitter is rife with automated bot accounts, which he says the company undercounts.

Twitter has maintained that automated accounts make up less than 5% of daily active users and sued Musk last Friday to force him to complete his takeover bid.

“Having mounted a public spectacle to put Twitter in play, and having proposed and then signed a seller-friendly merger agreement, Musk apparently believes that he — unlike every other party subject to Delaware contract law — is free to change his mind, trash the company, disrupt its operations, destroy stockholder value, and walk away,” Twitter said in its more than 60-page lawsuit.

“Twitter brings this action to enjoin Musk from further breaches, to compel Musk to fulfill his legal obligations, and to compel consummation of the merger upon satisfaction of the few outstanding conditions,” it said.

The hearing is slated to be held virtually after McCormick alerted the parties on Monday that she tested positive for the coronavirus, according to CNN.

A decision on the trial’s timeline could come as soon as Tuesday after McCormick hears arguments.

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By Davies

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