Staff Reports
It's likely that the tides are changing against Elon Musk after he failed to complete a deal worth many billions of dollars to buy the social media network Twitter.
The company has retained Wachtell, Lipton, Rosen & Katz LLP, a New York law firm, in anticipation of a possible legal battle with Elon Musk over his decision to withdraw from his proposed acquisition of Twitter.
People who spoke with Bloomberg said that after tech wizard Elon Musk declared that he wished to end the transaction in filings made with the Securities and Exchange Commission on Friday, Facebook planned to sue Musk in Delaware the following week.
Twitter has vowed to do everything in its power to prevent Musk from pulling out of the $44 billion deal. As early as April, he made a preliminary offer to buy Twitter for $54.20 per share.
To ensure that the provisions of the merger deal are adhered to, the Twitter board has vowed to take legal action if necessary. The Delaware Court of Chancery is our best hope for success. Thursday, Twitter board Chairman Bret Taylor voiced confidence that the firm will prevail in the Delaware Court of Chancery.
It is possible that Twitter's legal team includes Bill Savitt and Leo Strine, both of whom served as chancellors of the Delaware Chancery Court in the past, according to a report from Sunday.
Tesla and SpaceX CEO Elon Musk has accused Twitter of misrepresenting the number of spam bots on its platform.
Twitter's public declaration of monetizable daily active users was "either false or materially misleading," Tesla CEO Elon Musk argued in an SEC statement on Friday. According to Musk, Twitter's decision to dismiss its revenue product lead and general manager of consumer, together with the company's decision to remove three executives after he attempted to acquire Twitter, were violations of contract.
Musk's decision to walk out of the deal may result in financial consequences for him. The merger pact includes a $1 billion "reverse termination fee," which Musk would have to pay if he opted to walk away from the arrangement.
Twitter's efforts to improve their legal counsel have been well reported, and in response to this, Tesla CEO Elon Musk has made a series of adjustments to his Twitter account.
BREAKING: @elonmusk OWNS Twitter pic.twitter.com/vvEZuaXQvG
— Sir Doge of the Coin ⚔️ (@dogeofficialceo) July 11, 2022
— Elon Musk (@elonmusk) July 11, 2022
— Elon Musk (@elonmusk) July 11, 2022
Because it would force Twitter to openly address the issue of spam bots, Musk welcomed the potential of a lawsuit being filed against the company by Twitter.
Musk's acquisition of Twitter was seen by conservatives as a significant step forward in the fight against censorship and abuse of free speech rights.
The preceding is a summary of an article that originally appeared on American Examiner News.
