Lead exchanged: Elon Musk sues Twitter after being sued by the social network

Billionaire Elon Musk filed a lawsuit against Twitter this Friday (29) over the withdrawal of the purchase of the social network. The 164-page document was revealed by Reuters, where it highlighted that the action brought by the businessman is confidential.

The measure taken by the businessman came just hours after Chancellor Kathaleen McCormick, of the Delaware Court of Chancery, pointed out that the judgment regarding the withdrawal of the purchase of Twitter takes place on October 17th. According to the decision, the trial will last five days.

The lawsuit filed by Musk represents just another chapter in the imbroglio involving the billionaire’s acquisition of the social network. That’s because, also this Friday, a Twitter shareholder filed a lawsuit against the businessman, indicating the need for the deal to be closed by the parties.

Elon Musk and the lawyers claim that the purchase was not completed due to the large number of bots and fake accounts on the social network. The businessman asked for a report before closing the purchase, where he highlighted that the data presented was inconsistent.

Souvik Banerjee/Unsplash

Earlier this month, Elon Musk, Tesla’s chief executive, revealed he was terminating the Twitter takeover agreement. The businessman claimed that the company did not provide clear and sufficient information about the number of spam and fake accounts present on the platform.

Since the beginning of the process of buying Twitter, Musk has made several threats of abandoning the deal. However, he will have to pay $1 billion for the spin-off process. The initial value of the purchase would be US$ 44 billion. The abandonment of the deal caused Twitter’s revenues to drop 6%.

On April 14, Tesla and SpaceX owner Elon Musk offered $44 billion for the total purchase of Twitter. Ten days earlier he became the largest single shareholder after buying 9.2% of shares in the social network.

However, Twitter’s board decided to reassess Musk’s proposal just a few weeks later. The company had claimed that it was committed to a “careful, comprehensive and deliberate review” of the offer put forward by the billionaire. At the end of April, the board chose to accept Elon Musk’s proposal, which had an open path to complete the deal.

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The conclusion of the deal was again affected in the month of May. This is because the businessman said he would not continue the purchase of Twitter to assess the number of fake accounts on the platform. According to him, the justification would be in reference to the “pending details that support the calculation that fake/spam accounts actually represent less than 5% of users”.

Source: Reuters


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About Yadunandan Singh

Born in 1992, Yadunandan approaches the world of video games thanks to two sacred monsters like Diablo and above all Sonic, strictly in the Sega Saturn version. Ranging between consoles and PCs, he is particularly fond of platform titles and RPGs, not disdaining all other genres and moving in the constant search for the perfect balance between narration and interactivity.

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