Elon Musk, the richest man in the world, has lost his request for a delay after a US judge ordered that Twitter’s lawsuit against him go to trial in October.
When Mr. Musk withdrew from his $44 billion (£36 billion) offer to purchase Twitter earlier in July, the firm decided to sue him. Twitter is hoping that the court will direct Mr. Musk to finalize the acquisition at the agreed-upon share price of $54.20. The software tycoon claims that Twitter is hiding information regarding bogus accounts.
Due to the complexity of the case, his legal team requested that the trial start early in 2019, but Twitter requested a September date. A Delaware court agreed with the business on Tuesday, stating that a trial postponement would create a “fog of uncertainty.” Kathaleen St Jude McCormick, the chancellor, stated that “delay threatens irreparable harm.” “The risk increases with the length of the delay.”
Prior to the proposed merger, Mr. Musk was charged with a “large list” of breaches, according to the lawsuit, and it was claimed that he “cast a cloud” over the business.
Twitter’s main attorney William Savitt stated during the hearing on Tuesday that the lingering uncertainty regarding whether the merger would proceed or not “inflicts injury on Twitter everyday.”
One argument holds that Musk is still interested in purchasing Twitter; he is just attempting to negotiate a lower price. If so, his attorneys are incredibly skilled poker players.
The legal team for Mr. Musk desired that this trial take place in 2019. They said that more time was required to sift through the data on spam accounts. But it’s obvious that this is also a stalling tactic.
The company’s shares are now trading for roughly $39.45, far less than the $54.20 per share it intends to consummate the merger at. As a self-described “free speech absolutist,” Mr. Musk has vowed to relax content restrictions if he were to acquire the business.
Additionally, he demanded that the business be more transparent about how tweets are promoted to wider audiences and how they are presented to users.
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