Connect with us

Hi, what are you looking for?

TOP news

Twitter says Elon Musk is trying to abandon his deal to buy the company because his Tesla shares tanked

Elon Musk.

Andrew Kelly/Reuters

  • Twitter sued Elon Musk over the billionaire’s attempt to abandon his proposed acquisition of the company.
  • Twitter’s lawsuit says Musk is trying to abandon the deal because his personal wealth has fallen.
  • Tesla stock has dropped almost 30% since Musk first agreed to buy Twitter, costing Musk $65 billion.

Twitter sued Elon Musk on Tuesday over the billionaire’s attempt to terminate his proposed takeover of the company.

Twitter accused Musk of trying to terminate the deal under false pretenses, and said the real reason he wants to walk away is because Tesla stock has dropped since he first agreed to buy Twitter for $44 billion in April.

Tesla shares have fallen almost 30% since April 25, the day Twitter agreed to Musk’s proposed takeover, amid a broader sell-off in tech stocks.

Twitter’s lawyers point out in the lawsuit, which was viewed by Insider, that Musk’s personal wealth has fallen significantly as a result.

Elon Musk’s net worth has fallen by $65 billion since the deal was struck, Insider reported Saturday.

“Musk wants out. Rather than bear the cost of the market downturn, as the merger agreement requires, Musk wants to shift it to Twitter’s stockholders,” Twitter’s lawsuit states.

Musk said Friday he wants to terminate the deal because Twitter did not provide him with enough information about bot accounts on its platform, and that it didn’t consult him on terminating two high-level executives.

Twitter said in its lawsuit it “bent over backwards” to provide Musk with the information he requested, and that its agreement with Musk gave it the right to terminate employees without consulting him first.

Twitter said Musk has been “acting against this deal since the market started turning, and has breached the merger agreement repeatedly in the process.”

Musk did not immediately respond when contacted by Insider.

Click to comment

Leave a Reply

Your email address will not be published.

Advertisement

You May Also Like

Opinion

Adeline van Houtte is the Economist Intelligence Unit’s lead analyst on Russia. It looks like Russia is at it again, after the unusual movement...

Health Care

Former President Donald Trump confirmed he had gotten a booster during a live show with Bill O’Reilly in Dallas on Sunday.

TOP news

US Navy aircraft carrier USS Carl Vinson leads other US Navy ships during an exercise with the Indian navy in 2012. US Navy Photo...

TOP news

Medical imaging service in a hospital in Savoie, France. A technician monitors a brain MRI scan session. BSIP/Universal Images Group via Getty Images A...