Twitter is Officially Suing Elon Musk Over Canceled Purchase Agreement

In response to Elon Musk backing out of the Twitter acquisition, the company is suing the Billionaire to enforce the purchase. The suit was filed in the Delaware Court of Chancery on Tuesday, following Musk's announcement that he would not move forward. 

Musk had previously hoped to purchase the company for $44 Billion and take it private, buying shares for $54.20 each. He also liquidated a significant amount of his Tesla holdings to make the purchase.

 A Twitter spokesperson said that following entering a binding contract, Musk "refuses to honor his obligations to Twitter and its stockholders because the deal he signed no longer serves his personal interests."

In a public complaint, Twitter said, "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." They continued, "This repudiation follows a long list of material contractual breaches by Musk that have cast a pall over Twitter and its business."

People have speculated why Musk backed away from the deal, with some speculating that Twitter has substantially more bots and fewer active users than the company claimed. Others suspect Musk faked interest in the acquisition to offload Tesla shares without hurting the price. 

Whatever the cause, Twitter hopes to force Musk into the deal, landing shareholders a roughly 30% return on current levels.

Author: Garrett Meifert

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