Twitter has hired a legal team Wachtell, Lipton, Rose and Katz as it braces itself to sue business mogul Elon Musk in the $44 billion botched buyout deal.
Twitter and Musk have entered into a legal battle over the buyout deal that now seems crippled. Before bowing out of the deal, Musk accused Twitter of violating the sale agreement which says provided ground for him to walk away without paying a $ 1 billion penalty.
Twitter says the deal Agreement made between the two parties is still not broken. In a letter to Musk, Twitter’s Lawyer disclosed that Musk Knowlingwill, intentionally, willfully and materially breached his agreement to buy the company.
Musk vows his reason for terminating the purchase is because Twitter refused to share information that would help him verify its estimates which violates other parts of the legal agreement. He also accused Twitter of making false and misleading representations about its estimates of how many accounts on its platforms are fake or spam.
Prior to the Friday announcement to bow out of the deal, Musk had gotten cold feet over the deal with repeated complaints of Twitter’s refusal to disclose all of its data regarding spam bots on the app.
In a tweet shortly after the news, Twitter chairman Bret Taylor wrote, “The Twitter Board is committed to closing the transaction on the price and terms agreed upon with Mr Musk and plans to pursue legal action to enforce the merger agreement.”
He added, “We are confident we will prevail in the Delaware Court of Chancery.”
Musk first offered to buy Twitter back in April, prompting the company’s board of directors to adopt a poison pill plan according to ign. Twitter subsequently reversed course and agreed to the $44 billion buyouts, which Musk called his “best and final” offer.
Twitter had already made preparations for the completion of the deal including freezing employment and mass layoffs in preparation for the new management to take over. Musk had earlier met the Twitter staff as well over the buyout as well. The final verdict on the deal is unclear but definitely will be massive considering so much has been done with the sell plans on board.
From the experts’ point of view, Twitter has a strong chance to win the case. courts have previously forced buyers to complete deals after getting cold on the deals they once chased and Musk might as well be forced to do so. However, the outcome of the ruling remains unclear.