Science

Elon Musk takeover of Twitter: Judge delays trial for parties to reach deal

The judge in charge of the lawsuit between Twitter and Elon Musk postponed the procedure on Thursday, October 6, and gave both parties until October 28 for the Tesla boss to buy the social network, otherwise the lawsuit, originally scheduled for ten days, will take place In November.

Hours earlier, the multibillionaire’s lawyers had called for a suspension of lawsuits initiated by Twitter to force their client to honor the acquisition agreement. They assured that they expected the operation to be completed “around October 28”.

Elon Musk forced the California group’s board of directors to buy it back for $44 billion in April before unilaterally renegotiating its commitment weeks later. On Monday, October 3, in another twist, he finally offered to complete the transaction at the price originally agreed upon if he received the necessary funds and Twitter dropped their lawsuits.

End of benefits for Twitter

But after months of public attacks and a change of heart for the eccentric entrepreneur, the company demanded hard and fast proof of his seriousness. Therefore, Twitter’s lawyers earlier Thursday opposed the adjournment requested by the opposing party, calling the proposal “an invitation to more subterfuge and delay.”

Judge Kathleen McCormick finally ruled: “The trial is adjourned until 5:00 pm October 28, 2022 to allow the parties to reach a deal. If it is not concluded (by that date and time), the parties should contact me by email to get trial dates in November. »

The move took many observers by surprise as Twitter seemed to have the upper hand so far. Delaware law, which usually resolves conflicts of this type, promotes respect for contracts.

Financing conditions

Talks between the two sides resumed earlier in the week, but they are stumbling over funding terms. In their motion, Elon Musk’s lawyers note that “Twitter refuses to drop its lawsuits due to the theoretical possibility of future underfunding.” But “this failure at this stage did not happen,” they emphasize. “On the contrary,” creditors have indicated that they “will be ready to fulfill their obligations,” the lawyers say. “Twitter’s baseless speculation has been debunked by the banks themselves. »

They believe that their client “agreed to do” what the company asked for. “And yet Twitter refuses to accept this positive response. Incredibly, (the company) insists on continuing the procedure, jeopardizing the deal and playing with the interests of shareholders.”

The bluebird group, for their part, argued they had no reason to trust the richest man in the world. “In many cases, the Musk clan did not fulfill their obligations to complete the transaction,” Twitter lawyers responded.

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