Despite Tesla CEO Elon Musk’s declaration that he has terminated the $44 billion Twitter deal, the micro-blogging platform’s position continues to be “the agreement is not terminated.”
Twitter lawyers from Wachtell, Lipton, Rosen & Katz law firms are preparing for a long-drawn court battle after Elon Musk filed paperwork with the US Securities and Exchange Commission (SEC) to exit the acquisition deal.
Twitter has now filed a letter with the SEC, saying Elon Musk’s termination attempt is invalid because “Mr. Elon Musk and the other Elon Musk Parties have knowingly, intentionally, willfully, and materially breached the Agreement,” The Verge reported late on Monday.
According to reports, the Twitter stock could nosedive to $11 per share if the deal doesn’t materialize.
The world’s richest person last week terminated the deal, stating that the company was in “material breach” of their agreement and had made “false and misleading” statements during negotiations.
ALSO READ: Elon Musk to Pay $1 Bn as Deal Termination Fee to Twitter
Twitter later announced it was going to sue the Tesla CEO.
The “board is committed to closing the transaction on the price and terms agreed upon with Elon Musk and plans to pursue legal action to enforce the merger agreement”, Twitter Chairman Bret Taylor said in a tweet.
“We are confident we will prevail in the Delaware Court of Chancery,” he added.
In reply, Elon Musk poked fun at Twitter and shared a meme.
Elon Musk’s meme read: “They said I could not buy Twitter. Then they would not disclose the bot information. Now they want to force me to buy Twitter in court. Now they have to disclose the bot information in court.”
Elon Musk will have to pay $1 billion in termination fees to the micro-blogging platform, as per an earlier filing with the US SEC.
Elon Musk had put the deal on hold over the actual number of spam/fake accounts and bots on the platform and sought a reply from Twitter CEO Parag Agrawal.
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