Musk taunts Twitter with emoji, Twitter says it has not violated contractual obligations

According to foreign media reports, in a letter sent to Musk on July 10, Twitter accused Musk of "willfully" violating the agreement to acquire Twitter, and said that he did not violate the obligations stipulated in the acquisition agreement. .And a few days ago, Musk tried to use this as an excuse to abandon the acquisition of Twitter.

According to the letter, "Twitter requires Musk and other interested parties to comply with their obligations under the agreement, including their obligation to use their best and reasonable efforts to complete the agreement and make the transactions described in the agreement effective." Twitter also In the letter, the merger agreement remains in effect and steps will be taken to complete the transaction.

Twitter plans to sue Musk to force him to close the deal.On July 11, Musk laughed off the threat and made fun of it in a series of tweets, including a mocking meme.Twitter plans to file a lawsuit in Delaware earlier this week, according to people familiar with the matter.

Image source: Musk Twitter

Benchmark analyst Mark Zgutowicz said, "Twitter's board must consider the potential harm to employees and shareholder groups of any additional internal data disclosed in the lawsuit."

Francis Pileggi, a corporate litigator at the Lewis Brisbois law firm in Delaware, said that if Musk defended himself by claiming that Twitter had inflated the number of fake accounts, he could use Twitter's so-called "robot account number" in future lawsuits. "In the first place.

Pileggi added, "I would be surprised if Musk were banned from accessing this information." But if the number of fake accounts is many times higher than Twitter's estimated 5%, it could spark new talks to lower the acquisition of Twitter offer.

Legal experts say Twitter has a strong legal case for suing Musk, but the company could choose to renegotiate or settle rather than a protracted court battle.

"We believe that Musk's intent to terminate the merger is more based on the recent market sell-off than Twitter's failure to 'comply' with his demands," Jefferies analyst Brent Thill wrote in a note."We wouldn't be surprised to see Twitter drop to $23.5 without a deal being done, though."

On July 11, Twitter shares closed down 11.3% to $32.65, 40% below Musk’s $54.20 offer and the biggest one-day drop in more than 14 months.Twitter shares then rebounded less than 1% in after-hours trading.Tesla shares closed down nearly 7%.