Elon Musk pulls out of $44 billion Twitter deal Now he faces a trial that could cost him dearly. But at court everything goes too fast for him. Because if Musk gets his way, the Twitter process shouldn’t start until February at the earliest.
True to the motto “new bike, new crazy ride”, this week also starts with news about Twitter and Elon Musk.
Just last week, Twitter filed a lawsuit against Elon Musk. The reason: Musk pulled out of his $44 billion takeover of Twitter after a long time.
What is the current status of the Twitter process?
But Twitter didn’t just file a lawsuit last week. The company also appealed to the competent court with summary proceedings.
The group wanted to organize a four-day trial already in September. Elon Musk is now fighting back. He wants to start court proceedings in February 2023 at the earliest, how Bloomberg reported.
According to Elon Musk’s lawyers, Twitter officials “unfairly enforced the ‘warp-pace’ process.” Therefore, the Twitter process should not be negotiated until next year.
In the 14-page brief, Musk notes that Twitter’s proposed timeline is “an extremely fast timeline for an event of this magnitude.” So the process should start on February 13, 2023 at the earliest.
Why is Elon Musk pushing for a later Twitter trial?
According to Bloombergreport accuses Elon Musk of “tactical delay” on Twitter. The people responsible for the platform have thus delayed providing information about savings accounts. A request for expedited proceedings would support this.
“Twitter’s sudden demand for warp speed after two months of stalling and obfuscating is the latest tactic to hide the truth about spam accounts long enough for the allegations to hit,” Musk’s legal team said.
The underlying dispute over fake and spam accounts is central to Twitter’s value.
The evaluation and analysis of existing spam and bot accounts on Twitter is “extremely substantive and technically demanding.” The judicial exchange of information therefore requires a lot of time.
Twitter ignores the fact that Elon Musk is the company’s second largest shareholder. According to his lawyers, Musk therefore has a “far greater economic interest” in the company than the entire board of directors.
What are the chances of an expedited proceeding?
But whether the process on Twitter will actually become an accelerated process will be seen on Tuesday. Because then the responsible judge wants to hold a meeting and decide on the procedure.
The Twitter trial will be held in Delaware Chancery Court. Both parties stated this in the takeover agreement.
The judges there are experts in commercial law. Therefore, processes of this magnitude are resolved here more quickly than is usual in American courts.
Noisy Bloomberg “Complex business cases” in the Delaware Chancery Court are usually “tried before a judge within six or seven months of filing.”