This Friday Elon Musk announced that he will be pulling out of the deal on Twitter, but that doesn’t mean it’s over. Reuters reports that Twitter has hired a law firm Wachtell, Lipton, Rosen & Katz LLP as it intends to sue Musk and force him to close the $ 44 billion acquisition.
The fact is that in April Musk signed a legally binding agreement, according to which he is obliged to acquire the company at $ 54.20 per share (with this agreement he also thwarted his right to due diligence).
However, Musk soon got cold feet and announced in May that the deal is on hold. This was how he was able to investigate Twitter’s claims that no more than 5% of “monetizable daily active users” are bots. Musk believes the real number is much higher and that Twitter prevented him and his team from investigating, thereby violating several provisions of the contract.
Twitter is expected to file the actual lawsuit this week, according to Bloombergwhich mentions several insiders.
It is interesting to note that Wachtell he previously worked for Musk as a legal counsel in 2018, when he tried to take Tesla privately (the infamous “guaranteed financing” incident). Musk touched Quinn Emanuel Urquhart and Sullivan LLP who previously defended him from the resulting libel suit against him in 2019 (and they won).
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