Elon Musk vs. Twitter (TWTR) – Get the Twitter Report Inc .: It’s a real battle.
It is a battle of titans that will have major consequences for future mergers and acquisitions.
The World’s Richest Man and CEO of Tesla (TSLA) – Get Tesla Inc. Report abruptly withdrew its $ 44 billion bid to acquire the microblogging website that it defines as the city square of our time. Twitter took legal action to get Musk to fulfill his commitment. Therefore, it is not surprising that both opponents draw heavy artillery to destabilize the other. The battle is mostly mental. They must send messages to the opponent to show that he is willing to do anything to inflict blows that prevent him from getting up.
Twitter wants a test in mid-September
It was Twitter who first filed its lawsuit on July 12, just three days after Musk’s retirement, in the Delaware Chancellery Court. And in this paper, the platform used the entrepreneurial whims ’own tweets. The icing on the cake, the social network is calling for justice for a speedy trial.
The platform calls for the trial to be held in mid-September because the merger agreement between the two parties provides that if it is not closed before October 24, each of the two parties can terminate it free of charge.
“The ability of the defendants to terminate the agreement before the alleged October 24, 2022 fall date is extremely limited and carefully circumscribed,” Twitter said in its lawsuit that you can find here. “There is no right for defendants to terminate unless there is a breach significant enough to result in the failure of a condition of closure, which, after due notice, cannot be cured or is not cured within 30 days of the notification “.
“Twitter has suffered and will continue to suffer irreparable damage as a result of the defendants’ breaches,” the platform alleged.
Musk wants the trial to begin in 2023
Musk did not respond immediately. The billionaire let a few days pass and just went on the counterattack. In their response to Twitter’s complaint, Musk’s attorneys call for the trial not to be held until February 13, 2023 at the earliest.
“The timetable proposed by the plaintiff would seriously harm the defendants by depriving them of a significant opportunity to discover, conduct expert analysis and present their case,” the billionaire’s lawyers wrote in their motion which you can read in full here.
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“The only relevant date is the foreign date for debt financing, April 25, 2023. Accordingly, the defendants respectfully request trial from February 13, 2023, an extremely fast schedule for a case of ‘that enormous magnitude offered by court time for reasoned adjudication before the actual outside date,’ they argued.
In his letter in which he withdrew his Twitter takeover bid, Musk accused the social media management of having lied about the number of spam bots or fake accounts present on the platform. Twitter has always estimated that fake accounts account for less than 5% of its users. Musk estimates that figure is at least 20%.
“The basic dispute over fake and spam accounts is critical to the value of Twitter. It is also extremely intensive in facts and experts, and requires substantial time for discovery. Twitter is a social media platform the key performance metric self-proclaimed is that daily active users are monetizable (“mDAU”), ”Musk’s team said in its 16-page motion filed July 15th.
They continued:
“Extreme expedition is also not justified because any demand comes from the plaintiff’s strategic delay,” the billionaire’s team said. “If Twitter had quickly fulfilled its contractual obligations or informed defendants that it would not, this dispute would have matured in early May.”
“The plaintiff’s attempt to impose” the charges of expedited proceedings on the defendants and the court cannot be reconciled with [its] failure to proceed with probity “.
A hearing before a judge is scheduled for July 19. This hearing will decide when the trial will be held.
On a more relaxed note, the mogul feels that Twitter lacks humor.
“With a bot’s sense of humor, Twitter claims Musk is harming the company with tweets like a Chuck Norris meme and poop emoji. Twitter ignores that Musk is its second largest shareholder with a stake much bigger than the whole Twitter board. ”Musk’s lawyers said.