Time up for Elon Musk? Tesla CEO forced to seal Twitter deal soon or face trial
It would be a tough week for the world’s richest man, Elon Musk as he has left with a few more days to close his earlier bid or to face the legal battle.
Nearly two months after Tesla CEO Elon Musk walked away from a $44 billion Twitter acquisition deal, landing him in a legal battle with the microblogging site, he took a U-turn on Tuesday, agreeing to settle the promised deal. Though his promise to complete the deal has given him some time to ponder over his decision, it would be a tough week for the world’s richest man as he has left with a few more days to close his earlier bid or to face the legal battle.
The situation came after several twists and turns since the very first day when Musk proposed his intention to buy a 100 per cent stake in Twitter. Initially, it was believed that the deal involving the world’s richest man and one of the most influential social media platforms was settled impassively. However, much of the drama has played out on Twitter itself, with Musk raising questions about the fake accounts. He often took to Twitter to lament his decision to acquire the platform.
In June 2021, Twitter reportedly agreed to share its full information on spam “bots accounts” — automated accounts that typically promote scams and misinformation. Confronted with the data Musk walked away from the deal. Although Twitter claimed it has around 229 million accounts, of which nearly 5 per cent are fake or bots, Musk disputed the claims and asserted that 20 per cent or more accounts are bogus, without contending any evidence.
Crucial week for both Musk and Twitter
Subsequently, both parties landed in the court earlier this month, where Musk asked a US judge to halt an upcoming trial. Musk asked the tribunal to halt the upcoming Delaware court trial as the negotiations between the two parties have been under process.
Though the Tesla CEO revitalised the takeover offer, he said his firm needed time to get the financing in order. However, the microblogging site believes Musk’s arguments were an intended bluff and were meant to delay the court proceedings. Meanwhile, the head of the Delaware Chancery Court Chancellor, Kathaleen St.
Jude McCormick, said that Musk and Twitter have until October 28 to close the deal. On the other hand, the microblogging site contested that to proceed with the trial, saying Musk refuses to accept the “contractual obligations” of his April agreement. It described the world’s richest man’s move to delay the trial as “an invitation to further mischief and delay”.
Image: AP/Unsplash
