Twitter subpoenas banks, Elon Musk's friends over $44 billion deal
- Twitter is sueing Elon Musk for terminating the $44 billion deal that he had signed in April, 2022
- They have sent subpoenas to Morgan Stanley and Brookfield Asset Management
- Musk terminated the deal citing a 'bot' problem and Twitter's firing of top executives
Twitter has sent out subpoenas to various global banks in an effort to find evidence that Elon Musk purposely jeopardized financing of the $44 billion deal, according to a Reuters report.
The micro-blogging site is trying to find out why tech billionaire's motivation for terminating the buyout and has sent notices to units of Morgan Stanley, co-investors Brookfield Asset Management as well as Musk's advisors, according to filings in the Delaware Court of Chancery.
Twitter's subpoenas are an attempt to find out if financers had any information regarding how Tesla's stock prices would shift should the deal go through. Musk is the electric car company's Chief Executive Officer. Another aspect of the subpoenas is that Twitter is trying to find out information on documents and communications pertaining to the "bot" problem that Musk has claimed is at the center of the reason he terminated the deal.
Law experts that spoke to Reuters claim that the rationale behind Twitter's subpoenas are to determine if the founder of SpaceX had planned this from the beginning. Professor at law at the University of Connecticut, Minor Myers told Reuters that he believed Twitter suspects that Musk had been "conspiring to blow the whole thing up."
On the other hand, Musk will not have to see the $44 billion deal to completion if financing failed, provided he did not cause the failure.
Investors and friends in Musk's sphere of influence have also received subpoenas asking them for communications with the tech billionaire regarding conversations about Twitter. The responses to the subpoenas have not been kind.
Joe Lonsdale, the co-founder of Palantir Technologies tweeted about the subpoena he received, saying:
I have nothing to do with this aside from a few snarky comments, but got a "YOU ARE HEREBY COMMANDED" document notice."
Tech investor David Sacks, who is also the current general partner of craft ventures, posted on Twitter to make his feelings about the subject known: