Why Did The Court Withhold Course Case Over Musk?
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Sulaiman
- . October 7, 2022
- . Update: November 11, 2022 12:38 am
Elon Musk is again going ahead with his plans to finally buy Twitter at a proposed sum of $44 billion. In the meantime, a Delaware judge has halted a court case against the Tesla chief to give him more time to sort his business matters out.
Delaware Chancery Judge Kathaleen McCormick has said that if the transaction was not done by 5pm local time on October 28, she would then be compelled set new trial dates in November according to an order issued.
This is essentially a Twitter lawsuit against him. While he has been handed a pause, he also has to live up to his commitment and deadline to the agreement to pay $54.20 a share- an obligation be previously tried to abandon.
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Musk requested a pause in the hearing, saying the social media company “will not take yes for an answer” after he proposed closing the buyout in an October 3 letter. His lawyers focused on an October 28 closing. But Twitter insisted he come through the deal first. Talks between the two sides had snagged after Mr Musk said that his offer was now contingent on receiving $13 billion in debt financing. The original deal didn’t contain such a contingency.
Bone of contention has come on Musk retracting from the terms of the deal and altering the initial amount decided. In a formal statement shared with the media, Twitter general counsel Sean Edgett has shared that, “Our intention remains the same: to close the acquisition at the price and terms in the original merger agreement.”
As the court ruling came, Musk was on twitter spilling beans of future plans he has for the microblogging website. “There will be very rapid product evolution. Software engineering, server operations & design will rule the roost,” he continued in one and then another response online.
