Twitter-Elon Musk Trial to Kick Off October 17
Tesla and SpaceX CEO Elon Musk is scheduled to meet Twitter in the Delaware Court of Chancery in October for a trial over his agreement to acquire the social media company for $44 billion USD — reports The Verge.
Musk announced earlier this month that he was “terminating” his bid to purchase Twitter due to disagreements with the social media company over exactly how many spam/fake accounts its platform has. Twitter, meanwhile, is seeking to legally force the performance of Musk’s end of the deal.
The trial will run from October 17-21, with Judge Kathaleen McCormick presiding. Twitter originally pushed for a September trial, while Musk’s lawyers pursued a trial date sometime in early 2023. The two parties eventually agreed on an October start date, with Twitter requiring that the trial last no longer than five days.
For Twitter, an early trial makes a lot of sense. According to the company, the now-crumbling merger is taking a toll on its performance. Last week, Twitter blamed its disappointing second-quarter financials on the Musk deal and the uncertainty surrounding it.
Twitter shareholders are currently scheduled to vote on the Musk takeover in a special meeting slated to take place on September 13. Before Musk pulled out, the shareholder vote was supposed to seal the deal.
Even if the social media company is unable to get Musk to honour the agreement in court, the celebrity billionaire may still be on the hook for $1 billion USD in breakup fees.