| Welcome to Global Village Space

Wednesday, July 17, 2024

Elon Musk files countersuit against Twitter amid $44 bn takeover

Longer merger in limbo, larger cloud of uncertainty is cast on Twitter, says judge overseeing case

Tesla CEO Elon Musk shot back at Twitter, filing a countersuit Friday against the social media company regarding Musk’s decision to abandon his $44 billion takeover.

The 164-page document was sealed after the judge-imposed filing deadline, which means the contents of the countersuit are not accessible through public records.

“I have reviewed the counterclaims and declare that the matter contained therein insofar as it concerns my acts and deeds is true, and insofar as it relates to the acts and deeds of any other person, I believe it to be true,” said an accompanying filing signed by Musk.

Read more: Twitter: Revenue falling due to Musk uncertainty

Musk agreed to buy Twitter in April for $54.20 per share in an unsolicited agreement.

But the billionaire announced in July that he was pulling out of the deal, alleging that Twitter misrepresented user data and the number of spam bots on the platform is much higher than the company originally disclosed.

Twitter dismissed those claims, stating that the number of bots was well under 5% of total daily active users.

Delaware Court of Chancery judge Katharine McCormick granted Twitter’s request for an expedited trial during a preliminary hearing last week, with the five-day court battle set to begin Oct. 17.

Musk’s attorneys originally requested that the trial start no earlier than February, arguing that his legal team needed more time to investigate fake accounts on Twitter’s online platform.

“The longer the merger transaction remains in limbo, the larger the cloud of uncertainty cast over the company,” said McCormick.

Read more: Elon Musk mulls charging fee for Twitter?

Under court rules, a redacted version of Musk’s countersuit may soon be made public.

Shares of Twitter dropped 0.7% Friday to $41.32 at the closing bell on Wall Street.

Anadolu with additional input by GVS News Desk