Investors panic as Twitter argues Musk’s latest letter trying to cancel the transaction is “invalid.”


Twitter (NYSE:TWTR)

Twitter (NYSE:TWTR) stock dropped on Monday despite a legal filing from the business declaring Elon Musk’s attempt to cancel the agreement to be “invalid.”

Legal representatives for Twitter (NYSE:TWTR) stated, in a document that was submitted to the Securities and Exchange Commission, that the firm had not violated any of the “representations or responsibilities” outlined in the merger agreement.

According to the complaint, “As was the case with each of your other claimed terminations, the Musk Parties third purported termination is invalid for the independent reason that Mr. Musk and the other Musk Parties continue to knowingly, intentionally, willfully, and significantly break the Agreement.”

According to the lawsuit, Twitter (NYSE:TWTR) has stated that it would continue to fight for its legal authority to “specifically enforce all of the Musk Parties’ responsibilities under the Agreement.”

During the premarket hours, shares of Twitter (NYSE:TWTR) dropped by 1% to $41.76.

On Friday, Musk’s legal team contended that the company’s $7 million payment to a whistleblower was an extra reason to reject the sale. They stated that this was a further reason to cancel the contract.

In the amended ownership notice, in which Musk reported to have a 9.6% stake in the social network, the argument was made that Twitter (NYSE:TWTR) payment to Peiter Zatko was cause to terminate the deal. If the deal was not terminated, Musk would pay $54.20 per share in cash for control of the social network, which would result in Musk paying a total of $580 million.

Since April, when he initially agreed to assume control of the social network, the wealthiest person on the planet—who has a net worth of around $270 billion—has been attempting to back out of the contract.

The disagreement is scheduled to be heard in the Delaware Chancery Court the following month, when both parties will have the opportunity to explain their respective positions in front of a judge.

Last week, former Disney (DIS) CEO Bob Iger revealed the media giant learned that a lot of Twitter (NYSE:TWTR) users were “not real” while Disney looked into buying the social network in 2016. Iger made this statement about the time in 2016 when Disney was considering purchasing Twitter.

Featured Image – Megapixl © Miluxian

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