Status: 07.10.2022 02:45 am
After months of struggle, Elon Musk made a U-turn in the Twitter takeover dispute this week. The short message service wants to stick to a planned process. The responsible court is now speaking a word of power.
After Elon Musk’s surprising turnaround in the dispute over the Twitter takeover, there will be no trial for the time being. Chief Justice of the Delaware Supreme Court, Kathaleen McCormick, canceled the October 17 trial.
At the same time, however, she set a deadline for Musk: If the tech billionaire doesn’t complete the purchase of the texting service by October 28, there will be a trial in November, McCormick explained.
Musk’s over face
At the beginning of the week, after a long dispute, Musk agreed to buy the SMS service for $44 billion. He demanded that he be given time for the financing and that an upcoming trial in the case be averted.
In April, he initially announced the acquisition plans, but withdrew. He justified this by saying that Twitter underestimated the number of fake accounts on its platform, which could potentially impact ad revenue.
Musk also tweeted that the social media company was not living up to its potential as a platform for free speech. San Francisco-based Twitter then went to court in July to force the Tesla boss to honor the April agreement.
Dispute not yet resolved
However, despite Musk’s recent turnaround, the disputes between the two sides continue. Twitter formally asked Judge McCormick on Thursday to stick to the October 17 trial date. Because the billionaire refuses to abide by “contractual obligations” from the April agreement.
Musk should also have been aiming for a deal by next Monday, the company said. “But they don’t. Instead, they refuse to commit to a deadline,” Twitter attorney Kevin Shannon said in a letter. “They’re asking for an open-ended exit at the expense of Twitter shareholders (who owe $44 billion plus interest), while giving them (Musk’s team) the freedom to change their mind or create new reasons.” remember to fight to get out of the contract.”
Musk’s lawyers, in turn, accused Twitter of not wanting to accept their client’s renewed offer. The court must therefore stop the upcoming trial, they wrote in a motion filed with the Chancellery. Twitter denied allegations that it would not accept Musk’s new offer.