Skip to main content

Twitter says it’s going to sue Elon Musk for trying to back out of the deal

Illustration by Alex Castro / The Verge

Twitter’s message to Elon Musk after his attempt to bail on his $44 billion agreement to buy the company: we’ll see you in court.

“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,” tweeted Twitter’s chairman, Bret Taylor, less than an hour after Musk’s legal team said he wanted out of the deal in a filing with the Securities and Exchange Commission. “We are confident we will prevail in the Delaware Court of Chancery.”

If you’ve been following the twists and turns of this deal, it’s not a surprise that Twitter plans to put up a fight. Soon after Musk said he would buy Twitter and take it private, he began laying the groundwork for why he could back out, claiming that Twitter wasn’t being forthcoming about the number of bots on the platform. Twitter has insisted to Musk and the public that it has bots under control and that it intends to enforce the merger agreement.

When Musk and Twitter first signed the deal, both sides agreed to pay a $1 billion termination fee in the event that either backed out for specific reasons. Musk agreed to pay the fee if he isn’t able to secure the funding he needs to complete the takeover — which, so far, he hasn’t. And Twitter agreed to pay the fee if it found another buyer or its board recommended that stockholders vote against Musk’s offer.

Since Musk is claiming that Twitter breached the terms of the deal by not being forthcoming about critical business information as it pertains to bots, it’s clear he is trying to get out without paying anything. The breakup fee isn’t mentioned in the filing with the SEC on Friday outlining his rationale for backing out of the deal.

With Twitter saying it’s going to put up a fight to make Musk pay up, this already-crazy deal could soon turn into a protracted, messy legal battle. In an internal memo to Twitter employees sent Friday and obtained by The Verge, the company’s general counsel, Sean Edgett, told staffers to “refrain from Tweeting, Slacking, or sharing any commentary about the merger,” and that management would be “very limited on what we can share.”

“I know this is an uncertain time, and we appreciate your patience and ongoing commitment to the important work we have underway,” Edgett wrote.

Update June 8th, 7:45PM ET: Added details of internal Twitter memo to employees.



Source: The Verge

Popular posts from this blog

Uber Eats exits seven markets, transfers one as part of competitive retooling

Uber Eats is pulling out of a clutch of markets — shuttering its on-demand food offering in the Czech Republic, Egypt, Honduras, Romania, Saudi Arabia, Uruguay and Ukraine. It’s also transferring its Uber Eats business operations in the United Arab Emirates (UAE) to Careem, its wholly owned ride-hailing subsidiary that’s mostly focused on the Middle East. “Consumers and restaurants using the Uber Eats app in the UAE will be transitioned to the Careem platform in the coming weeks, after which the Uber Eats app will no longer be available,” it writes in a regulatory filing detailing the operational shifts. “These decisions were made as part of the Company’s ongoing strategy to be in first or second position in all Eats markets by leaning into investment in some countries while exiting others,” the filing adds. An Uber spokesman said the changes are not related to the coronavirus pandemic but rather related to an ongoing “strategy of record” for the company to hold a first or s

Keep your Oculus Quest controllers going strong with these batteries

The Touch Controllers for the Oculus Quest 2 ship with one disposable AA battery each, but once those run out of juice, you should invest in the best Oculus Quest 2 replacement batteries to fill in for them. While the Touch Controllers last much longer than the headset's limited battery, it's still wise to invest in some rechargeable batteries or a stack of disposable batteries to stop your VR sessions from getting disrupted. Here are the batteries and chargers we recommend for your Oculus Touch controllers. Best rechargable batteries + charger Panasonic K-KJ55MCA4BA 3 Hour Quick Charger with 4 AA eneloop Rechargeable Batteries Staff Pick These rechargeable batteries store up to 2,000 mAh of power and can be recharged up to 2,100 times. They can be charged completely from dead or partially charged without damaging the energy storage memory. We recommend buying them with the quick charger accessory, which will get your AAs recharged in no time, but you can also purchas

These Android games support Bluetooth controllers and they're better for it

Gaming is simply better with a controller in your hands. Gaming on Android typically requires you to settle for using touchscreen controls. However, some gracious game developers take the time and effort to add support for Bluetooth gamepads— and we love them for it. Since so few games provide this feature, we've taken the time to test and compiled our list of the best games that let you play with the best Bluetooth controller in your hands. We'd also recommend getting a Style Ring or PopSocket which can help prop your phone up at a good angle for gaming. You might recognize some of these games from the best Android games roundup and for good reason. But you're here for the best games with controller support, after all, so here I present to you the best you can find on the Play Store. The games Call of Duty Mobile GRID Autosport Tesla vs Lovecraft Evoland 2 Horizon Chase World Tour Riptide GP: Renegade Modern Combat 5: Blackout GTA: San Andreas Oceanhor

What ancient advice can teach us about AI

Artificial Intelligence (AI) is everywhere. Siri, Alexa and Google Assistant have become indispensable to millions of users. Tesla Autopilot has the potential to change driving forever. And IBM Watson took a new job providing big data solutions to corporations after its first job was in jeopardy. Those are just the most prominent examples. Helpful applications of AI are being deployed in a broad spectrum of industries, but AI also has the potential to be misused. About the author  Jason Egnal is Chief Marketing Officer at Zenfolio . His background spans a variety of industries, including SaaS, AI, Fintech and Consumer Electronics.  Zenfolio, the website builder and photo sharing site , recently introduced technology that applies AI to assist photographers in selecting the best photos from the thousands of shots typically taken during a photo session. The advanced image recognition technology is tremendously powerful and can make photographers more efficient than they ever d