Elon Musk’s Response To Twitter In Ongoing Buyout Saga Expected Friday
Tesla Inc (NASDAQ:TSLA) and SpaceX CEO Elon Musk’s response to Twitter Inc (NYSE:TWTR)’s lawsuit aiming to force him to complete his $44 billion buyout offer is expected to be released publicly by Friday evening at the latest. Musk’s team wanted to file a public version of their response and counterclaims by Wednesday.
Elon Musk’s Response To Twitter Expected By Friday
However, Twitter’s lawyers demanded more time to go over and possibly even redact the Tesla chief’s sealed filing. They said it “extensively” details internal information and data Twitter provided to Musk.
According to Fox Business, Chancellor Kathaleen St. Jude McCormick ruled via teleconference on Wednesday that the public filing be docketed by 5 p.m. on Friday, but it could be filed earlier. However, Twitter's lawyers argued that the rules of the court require five business days to go by before a public version of the filing be docketed.
Musk's lawyers said Twitter's attorneys misinterpreted the court's rules and that the filing contains no confidential information that the public shouldn't know.
Twitter Issues Numerous Subpoenas
On Wednesday, Yahoo Finance reported that Twitter's lawyers had subpoenaed more than a dozen advisers and bankers that had supported Musk's bid to buy Twitter. They want to learn what was going on in Musk's private negotiations leading up to the offer.
The first round of subpoenas sent on Tuesday blanketed a wide variety of advisers and would-be lenders to Musk, including crypto exchange Binance, Bandera Partners, Benefit Street, Factorial Funds and several others. Later in the day, Twitter's attorneys filed even more subpoena requests, targeting other well-known names like Citadel founder Ken Griffin and executives at Tesla and SpaceX.
The subpoenas reportedly demanded that the named parties deliver communications and documents that refute or support Musk's claim that Twitter underreported the number of "spam" or fake accounts on its platform.
Background On The Deal
In April, the Tesla chief agreed to buy the social network for $54.20 per share in a deal worth $44 billion. Musk said he wanted to take it private and loosen its content regulations while eliminating fake accounts.
However, he tried to back out of the deal in July, and Twitter sued him in an attempt to force the transaction through. Musk claims Twitter didn't provide him enough details about the number of fake accounts on its platform, but the social network accuses him of trying to get out of the deal because market conditions have changed.
Either side would be required to pay a breakup fee of $1 billion if the other is found to be responsible for the failure of the agreement.