Twitter hires law firm to sue Musk for terminating takeover
Tesla CEO Elon Musk terminated the $44 billion takeover of Twitter on Saturday. Now, the microblogging platform has hired US-based law firm Wachtell, Lipton, Rosen & Katz LLP to sue Musk and force him to complete the acquisition. The firm will file a lawsuit for the same in Delaware very soon. Meanwhile, Musk is being represented by Quinn Emanuel Urquhart & Sullivan.
Why does this story matter?
Wachtell, Lipton, Rosen & Katz is no stranger to Musk. It was one of his legal advisers to take Tesla private back in 2018. However, the endeavor was unsuccessful. Now, the stage is being set for a long legal battle, wherein Twitter will try to complete the takeover or get the breakup fee of $1 billion. The firm's shares are down by over 5%.
Why was the deal terminated?
Musk's legal team said that the deal was terminated because of the spam issue. The Tesla CEO believes that the proportion of spam was much higher than 5% - the figure claimed by Twitter. Musk also cited Twitter firing high-ranking executives and the talent acquisition team as reasons behind ending the agreement. However, pulling out of the acquisition still came as a surprise.
'Twitter plans to close deal at terms agreed with Musk'
Musk's decision to end the agreement has severely displeased Twitter. Its chairperson Bret Taylor took to the platform and said, "The Twitter 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."
Musk is now mocking Twitter with memes
After the news of Twitter hiring a law firm to sue Musk got out, the latter took to the platform to post memes, taking a dig at the company. While one has a chessboard, referring to a lengthy legal battle, another one reads 'Chuckmate'.
