Twitter will sue Musk over completion of $44 billion merger and ‘prevail’

Twitter responded to a filing by Elon Musk where he stated that he wanted to end the $44 billion takeover agreement. The company said that they will sue the Tesla CEO and was ‘confident’ it will prevail.

Also read: Why is Elon Musk keen to walk away from Twitter deal?

Bret Taylor, the chair of Twitter’s board, wrote in a tweet on Friday that the board is “committed to closing the transaction on the price and terms agreed upon with Mr. Musk and plans to pursue legal action to enforce the merger agreement. We are confident we will prevail in the Delaware Court of Chancery.”

Under these circumstances, Twitter may have pushed for the $1 billion US separation fee Musk promised to pay. Instead, it appears to be preparing to fight against the deal, which the company’s board has approved and CEO Parag Agrawal has stated he intends to complete.

The deal’s potential collapse is only the latest twist in a tale involving the world’s richest man and one of the most important social media sites.

Also read: Knowing Elon Musk beyond the Twitter drama

Much of the turmoil has unfolded on Twitter, with Musk — who has more than 95 million followers — bemoaning the company’s failure to live up to its potential as a free speech platform.

Twitter shares plummeted 5% to $36.81 US on Friday, significantly below Musk’s offer of $54.20 US. Meanwhile, Tesla shares rose 2.5 percent to $752.29 US.

Also read: Once upon a time: When Elon Musk met Twitter employees

In a letter to the Securities and Exchange Commission, Musk claimed that Twitter had “not complied with its contractual obligations” under the agreement, specifically providing Musk with enough information to “make an independent assessment of the prevalence of fake or spam accounts on Twitter’s platform.”