In an effort to find information that will allow him to back out of the previously agreed-upon $44 billion purchase of the massive social media network, Elon Musk has served former Twitter CEO Jack Dorsey with a subpoena.
According to documents made available on Monday, Dorsey was given a court order requiring him to give Musk any communications or documents pertaining to the April takeover agreement, as well as details on phoney or spam accounts or the methodology used by Twitter to determine the number of active users. In an effort to find information that will allow him to back out of the previously agreed-upon $44 billion purchase of the massive social media network, Elon Musk has served former Twitter CEO Jack Dorsey with a subpoena.
On October 17, Twitter and Mr. Musk will face off in court in Delaware to determine if Twitter can legally compel the business mogul to complete the deal. Many tech investors and business owners associated with Elon Musk have been subpoenaed by Twitter, including well-known VC Marc Andreessen and PayPal’s first COO David Sacks.
Mr. Musk has asserted that Twitter breached the terms of the agreement by sacking key executives and letting go a sizable portion of its workforce, as well as by failing to submit sufficient information regarding the amount of phoney, or “spam bot,” Twitter accounts. More details regarding the bot numbers are anticipated to surface during the trial court’s discovery process, when both sides are required to turn over evidence, according to Mr. Musk’s lawyers.
Twitter continues to stand by its estimations that less than 5% of users are bots. Since Musk didn’t ask for details on that subject when he made the buyout offer, Twitter questioned Musk’s claim that he has the freedom to leave if Twitter’s bot count is discovered to be inaccurate.
The business claims that Musk invented a story to get out of a merger agreement that he no longer found appealing. Twitter stated in a court filing that Musk’s counterclaims, which are based on distortion, exaggeration, and plain dishonesty, don’t alter anything.
In November of last year, Twitter co-founder Dorsey finished his second term as CEO and expressed support for Musk taking over the firm.
In the Twitter agreement, it was stated that in certain situations, the party who violated the terms would be required to pay a $1 billion termination fee. Billions of cash are at risk, but Twitter’s future is also in jeopardy because Musk believes that Twitter should permit legal speech, an absolutist attitude that has raised concerns that the network might be used to promote murder.
