(MENAFN- Straits Research)
According to several press sources, Tesla CEO Elon Musk obtained a Monday moratorium on Twitter lawyers' questioning. The billionaire had a deposition scheduled as part of his high-stakes legal battle with Twitter over whether he must carry out his agreement to purchase the social media company for $44 billion.
Rescheduled
Instead, Musk's interrogation was tabled until later. An individual who has been briefed on the matter claims Twitter CEO Parag Agrawal, who was also slated to appear before Musk's attorneys on Monday, has also postponed his deposition.
Bloomberg, Reuters, and the Wall Street Journal all reported on the Musk postponement, attributing the information to unnamed individuals.
Twitter's stock briefly rose in response to the postponements, rising 5.4% to $43.03 on speculation that the issue would be resolved. Later in the day, that energy started to fade. Shares of Twitter closed Monday at $41.58, up eight cents from the opening price.
According to court observers, postponements before significant pretrial hearings are not unusual. Tuesday is set aside for a hearing on several significant pretrial motions.
Before an October trial that will decide who is at fault for the apparent failure of Musk's Twitter bid and who owes whom enormous sums of money. As a result, both men were anticipated to respond to questions posed by opposing attorneys. The Delaware Chancery Court trial is scheduled to begin on October 17 and end after only five days.
Twitter-Tesla Acquisition
Business tycoon made a $43 billion offer to buy Twitter, Inc. on April 14, 2022. He had already paid $2.64 billion for 9.1% of the company's stock, making him the company's largest stakeholder. Musk was then extended an invitation by Twitter to join its board of directors, which he initially accepted before later rejecting. Twitter revealed a“poison pill” plan to stave off an invasion the following day. On April 25, the board of directors of Twitter unanimously agreed to take the company private after accepting Musk's $44 billion takeover offer. Musk said he intended to expand the platform's functionality, make its algorithms open source, stop spambot accounts, and advance free expression.
Agrawal praised the acquisition and reassured the staff that no layoffs were currently anticipated. On April 29, he presided over an all-hands meeting to discuss issues brought up by workers. Taking [Twitter] back from Wall Street is the right first step, according to Dorsey, who also expressed his support for the transaction and confidence in Musk as the company's owner. The statement caused Twitter general counsel Vijaya Gadde to cry in a meeting, and Musk and his followers teased her online. Participants in Musk's June 17 meeting with staff members had a generally adverse reaction to his remarks, calling them“incoherent” and“uninspiring.”
On July 8, Musk declared his desire to end the contract, claiming that Twitter had broken it by refusing to take action against spambot accounts. On July 12, the business filed a complaint in the Delaware Court of Chancery against Musk. On October 17, the trial is slated to begin. The proposed takeover has received a mixed response; praise has been given to Musk's planned improvements and vision for the company, while criticism has been leveled at concerns about a possible increase in misinformation and harassment on the site.
Musk Backing Out
One of the wealthiest men, Elon Musk, agreed to acquire Twitter and take it private in April. He offered $54.20 per share and promised to relax the company's content policing policies and eliminate phony accounts. He attempted to cancel the agreement in July, blaming Twitter for various offenses in the process.
Musk's announcement that he was backing out of the agreement, Twitter's stock fell by 7 percent and another 11 percent the following day. Several Twitter employees made light of the issue by posting amusing messages. Musk snubbed Trump by declaring it was“time for Trump to hang up his hat [and] sail into the sunset” after the president criticized Musk and termed the acquisition“rotten.” Most conservatives, except Trump, supported Musk. Former White House adviser Steve Bannon accused Twitter of lying about the number of its spambot accounts. CEO of Turning Point USA Charlie Kirk speculated that Musk might have been trying to“expose” Twitter the entire time. In response to Zatko's complaint, Agrawal issued an email to Twitter's staff in which she vehemently refuted the allegations and referred to them as a“fake narrative.”
Twitter then filed a lawsuit against Musk to make him complete the deal.
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