Elon Musk Must Close Twitter Deal by Friday or Face Trial
26 October, 2022 | Pranay Lad
Elon Musk, the CEO of Tesla, has until Friday to finalise the USD 44 billion acquisition of Twitter or risk going to court, according to media reports.
Elon Musk, the CEO of Tesla, is now under investigation by US federal authorities in relation to his USD 44 billion acquisition of Twitter, according to media sources citing a court filing by the microblogging platform. The clock is running out because billionaire Musk must complete the transaction by Friday at 5 p.m. ET. The media said that the Twitter court filing omitted specifics about the current investigation into the business magnate’s conduct that are under scrutiny by the authorities.
Without going into specifics, Twitter stated in the court document that they are investigating Musk’s “behaviour” in relation to the acquisition. The Musk legal staff appears to be under the most scrutiny.
Twitter said that Musk’s legal team had neglected to provide draught letters to the Securities and Exchange Commission and a PowerPoint show for the Federal Trade Commission. According to the media, this is a part of the continuing dispute between the two parties about whether Musk may cancel the agreement.
Alex Spiro, Musk’s attorney, responded to the Twitter filing by saying that it simply serves to distract from its own legal difficulties, which were revealed through whistleblower revelation. Last month, Peiter Zatko, a former Twitter security head, accused the social media platform of wrongdoings, including “Twitter’s tracking and measuring of user interaction.”
Spiro told CNN that “Federal investigators are looking at Twitter’s leadership.” Twitter submitted this deception in an effort to find out which of their many acts of wrongdoing are the subject of an inquiry.
Elon Musk, who had previously expressed interest in purchasing Twitter, abruptly ended the agreement in July. The Tesla CEO said that by exaggerating the quantity of spam and false bot accounts on its network, Twitter had broken the terms of their mutual purchase agreement.
The market experienced a significant drop following Musk’s agreement cancellation news. Twitter later filed a lawsuit against Musk, accusing him of employing bots as a cover to back out of a transaction.
Musk once more stated last week that he will proceed with the purchase of Twitter at the initially agreed-upon price of USD 54.20 per share. A court presiding over the case has, however, postponed the Twitter transaction legal procedures until October 28.