Tesla CEO Elon Musk is in legal trouble after he withdrew from a deal to buy microblogging site Twitter. The company has filed a claim against him in a Delaware court in the US for unilateral violation of the agreement. To help with this, Musk has now sought help from former Twitter CEO Jack Dorsey. Jack has been summoned by the court to testify.
Musk wants Dorsey to help him out of a $44 billion deal to buy Twitter, according to court documents and testify in support of his arguments. The court in Delaware will hear further on October 17 in the Twitter-Musk case. Dorsey has been summoned to appear on this day.
The dispute between Twitter and Musk is whether the Tesla CEO can be forced to buy this social media site? If Musk unilaterally and arbitrarily breaks the deal, he will have to pay damages to Twitter. After Musk’s announcement of ending the deal, Twitter has filed a court case against him.
Twitter alleges that Musk decided to back out of the deal because his company’s electric car maker Tesla’s shares fell sharply after the acquisition decision. At that time the stock market faltered and Musk had to shell out $100 billion. Whereas earlier, Musk had decided to buy Twitter for 38 percent more than its current share price.
Musk backs out of Twitter deal as Tesla shares fall. Musk is unnecessarily raking up the issue of fake or spam accounts on Twitter. The real reason for his breaking the deal is the loss to Tesla.
Elon Musk, the world’s richest man, says Twitter hasn’t told him the exact number of fake account holders on its site. He estimates that there are a large number of spam accounts on this site. It is important to find out their exact number in order to proceed with the purchase agreement. Musk broke the $44 billion Twitter deal by making the spam account an issue.
Musk wants former Twitter CEO Dorsey to back up his arguments and put before the court documents containing the exact number of the fake account holders and active users on the microblogging site, so that everything will be clear. It will be interesting to see if Dorsey testifies for Musk or supports his former company.