Twitter sued Elon Musk to complete the deal, which he left abandoned. In response to the lawsuit, he plans to launch his own social network to compete with Twitter.
There was an important meeting between Jack Dorsey, Twitter’s founder, and Elon Musk on March 26, 2022. According to the documents filed during that meeting, it could force Elon Musk to complete the deal.
During his meeting with the Head of Twitter, Parag Agrawal, and Bret Taylor, the board chair. Elon told them that he had three options:
- Join Twitter’s board
- Take Twitter private
- Start a Twitter competitor
A few days after the meeting, Elon confirmed this on his official Twitter account.
To complete the $44 billion deal, Twitter is taking Elon to court to complete the acquisition. Upon learning about the lawsuit, Elon tweeted: “Oh, the irony, lol.”
The deal’s deadline is October 24, 2022, so Twitter is pushing everything so their case can be sorted out before the date.
Elon also saw a massive drop in his Tesla share price since he announced the purchase of Twitter. He was planning to use the Tesla stocks to complete the Twitter payment. Instead, according to a report, he has lost about $2 billion in just a week.
Initially, Elon Musk said he wanted to buy the company (Twitter) to eliminate bots and promote freedom of speech on the platform. But he backed out on the same vision to eliminate bots after causing Twitter not to produce the documents that clarify the bot situation.
Despite promoting freedom of speech, Elon Musk directly used harsh language toward Twitter employees, which resulted in the employees leaving the company.
Why did Elon Musk back out of the Twitter deal?
Elon Musk asked Twitter to provide documents on the Twitter bots, claiming that 90% of the users are bots on the platform, while Twitter contended that only 5% are bots. After Twitter was unable to present the documents, Elon canceled the deal.