Twitter officially announced to Elon Muskbring the action, and asked the court to enforce the original agreement to acquire the company for $440 billion. It also believed that Elon Musk's proposal to terminate the acquisition was just a pretext for extortion.
In the lawsuit, Twitter believes Elon MuskReasons for refusing to proceed with the acquisitionOn the other hand, Twitter directly pointed out that Elon Musk's remarks after the public announcement of the acquisition for $440 billion continued to affect Twitter's market value, creating obvious business risks.
Prior to this, Elon Musk repeatedly stressed that the proportion of fake accounts on Twitter is far higher than 5%. He also repeatedly criticized Twitter for failing to hand over real data content, and even believed that Twitter was trying to cover up the true proportion of its fake accounts with misleading statements.
However, Elon Musk has signed a legally binding agreement with Twitter, which includes that if Elon Musk fails to acquire Twitter in accordance with the agreement, he will compensate Twitter at least US$10 billion. In addition, if Elon Musk is able to complete the acquisition through financing, Twitter can also use litigation to require Elon Musk to fulfill the contract and complete the acquisition.
Twitter believes that the reason why Elon Musk chose to reject the acquisition was actually because his personal interests were obviously affected. This included the decline in Tesla's stock price after Elon Musk announced the acquisition of Twitter, which led the billionaire to attempt to refuse to fulfill his acquisition obligations on the grounds that Twitter failed to provide real data.
On the other hand, Twitter also alleged that after the acquisition was announced, Elon Musk continued to criticize Twitter's senior management on his personal Twitter account, and continued to use his remarks to influence Twitter's stock price, which was a clear violation of the agreement signed at the time and even failed to make every effort to complete the acquisition.
Market opinion suggests that Elon Musk may be preparing to use litigation to force Twitter back to the negotiating table and plan to complete the acquisition at a lower price. However, other possibilities include paying a $10 billion "breakup fee" to end the dispute, or failing to complete the acquisition due to financing difficulties.
