Twitter has accused Elon Musk of “knowingly” breaching an agreement to buy the social media giant.
On Monday, Twitter fired back at Mr Musk, days after the Tesla CEO announced his intention abandon the £36.5billion takeover deal as the social media giant has “failed to meet its contractual obligations”.
The company denied it breached its obligations under the merger agreement in a letter to Mr Musk dated Sunday and filed with regulators on Monday.
“Twitter requires that Mr. Musk and the other Musk parties comply with their obligations under the Agreement, including their obligations to use their best efforts to complete and effectuate the transactions contemplated by the Agreement,” the letter reads .
The letter also states that the merger agreement remains in effect, adding that steps are being taken to finalize the deal.
The tech giant had previously said it would sue the CEO of Tesla and SpaceX as early as this week to finalize the deal and was “confident” it would win in court.
However, Mr Musk poked fun at the threat by posting memes implying that the social media giant would have to disclose more information about bots and spam accounts if it sued him.
The company plans to file a lawsuit in Delaware earlier this week, people familiar with the matter told Reuters.
Shares of Twitter fell 11.3% to $32.65, its biggest daily percentage decline in more than 14 months.
Legal experts believe the 16-year-old social media company has a strong legal battle against Mr Musk but could opt for a retrial or settlement rather than a lengthy trial.
The potential breakup of the £36.5billion deal is just the latest twist in a saga between the world’s richest man and one of the most influential social media platforms.
Much of the drama has been playing out on Twitter, where Mr Musk – who has more than 95million followers – bemoaned the company’s failure to fulfill its potential as a free speech platform.
Experts even believe that Mr Musk may be trying to “lower” Twitter’s price by withdrawing from his purchase agreement.
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https://metro.co.uk/2022/07/12/twitter-accuses-elon-musk-of-knowingly-breaching-sale-agreement-16986302/ Twitter accuses Elon Musk of "knowingly" violating the purchase agreement