Twitter to sue Elon Musk after trying to back out of the deal.
The message Twitter has for Elon Musk after his attempt to back out of a deal to buy the company for $44 billion: see you in court.
“Twitter’s board is committed to completing the transaction at the price and agreement previously reached with Mr. Musk, and plans to take legal action to enforce the merger agreement between them,” Twitter CEO Bret Taylor said in a statement. , less than an hour after Musk’s legal team said he wanted out of the deal after filing a filing with the Securities and Exchange Commission.
“We are confident that we will emerge victorious in the Delaware Civil Court,” Mr. Taylor wrote, among other things, in his tweet.
When Musk and Twitter signed the initial deal, the two sides agreed to pay a break-up fee of $1 billion if either side backed out for any specific reason.
Musk agreed to pay the fee if he can’t raise the funds needed to complete the acquisition — which he has yet to do.
On the other hand, Twitter executives agreed to pay this fee in the event that they find another buyer, or in the event that the company’s board recommends that shareholders vote against Musk’s offer.