Twitter is now suing the billionaire Elon Musk for his attempt to back off from the proposed deal to take over the social media. From Twitter, they accuse Musk of trying to walk away on false pretenses. According to them, the real reason for his leaving is that the Tesla stock market price is on a fall. It is heading straight down with great speed, especially since he agreed on the deal back in April.
April 25th is the exact date when Elon announced he will step into buying the social media. Since then, Tesla’s shares have fallen by more than 30%. Percentage don’t give you a clear mental image of the amount that he lost, so when you put it into numbers, he lost more than $65 billion.
Is Elon Musk Trying To Abandon Twitter Deal Because Tesla Stock Market Price Falls?
This is more than the amount he agreed on to buy Twitter. Twitter’s legal team says that now, Elon will face an even bigger fall in wealth. The Twitter lawsuit will significantly affect his companies. Elon is losing and will lose even more money in the following period. According to Twitter’s law team this is inevitable.
“Musk wants out. Rather than bear the cost of the market downturn, as the merger agreement requires, Musk wants to shift it to Twitter’s stockholders.” – a statement of the lawsuit says.
Elon Musk says that he feels offended and that might be the main reason for abandoning the deal. He literally waited more than 1 month to obtain the data requested. Furthermore, he was disrespected because the board decided to terminate two high-level executives from the company and they didn’t consult him or informed him about it beforehand. All this, coupled with the fall of the stock market price did its part.
However, from Twitter, they state otherwise. They say Musk didn’t know what he was exactly asking for. They did everything in their power to obtain the data and provide it to him. But he seemed not satisfied with it regardless of what they did. For the second accusation they state that the deal doesn’t include any clause that obligates them to provide information on hiring and letting go of staff until he is the owner.
Musk is not available to any of the newsletters to answer the questions that they might have for him. He remains ‘silent’ and keeps himself busy with matters far different from the issues that he faces with the Twitter deal.
In the meantime, Musk enters into a conflict with ex-President Donald Trump and has been exchanging tweets with him. He seems to be worrying more about politics than about his own wealth. Furthermore, instead of sitting together and solving the situation with Twitter, he has been posting memes about it.
https://www.youtube.com/watch?v=J0XNxRGc_kw
