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What is Elon Musk’s end game?
A lot has transpired since Elon Musk’s acquisition of Twitter, which was chaotic from the start. Initially, Musk wanted to acquire Twitter for $44 billion. Later, he tried to retract the offer, claiming Twitter did not provide accurate figures on the number of spam accounts. Ultimately, former shareholders forced Musk to follow through with the acquisition, and he was legally obligated to purchase Twitter.
The former shareholders forced Musk to acquire Twitter because they believed he was trying to back out of the deal in “bad faith.” They argued that Musk’s conduct during his pursuit of the social network was not genuine and that he started acting against the deal when the market began to turn. In this context, Twitter filed a lawsuit against Elon Musk in the Delaware Court of Chancery, seeking to enforce the terms of the acquisition agreement.
The legal obligation existed because Musk had entered into a binding agreement to purchase Twitter for $44 billion. When he tried to terminate the deal, Twitter’s shareholders claimed that his attempt to back out was unjustified and not in line with the terms of the acquisition agreement. By taking the matter to court, Twitter sought to hold Musk accountable for the contractual obligations he had initially agreed to, eventually forcing him to proceed with the acquisition.
