Elon Musk and Twitter deal halted until October 28. The trial will resume because the Musk team hinted at closing the Deal. The main reason behind the trial delay is to close the Deal, as Musk’s legal team said they would close it as soon as possible.
A judicial file made late Thursday indicates that a judge in Delaware Chancery Court has agreed to postpone the trial between Elon Musk and Twitter so that Musk and Twitter may negotiate a deal for Musk to acquire the business. The filing closed after a week of high-stakes legal drama, during which Twitter’s sources insisted on going to trial, and Musk said he had the $44 billion he needed to seal the acquisition within days.
A court in the United States delayed the trial between Elon Musk and Twitter on Thursday. The deadline for the parties to finalize the agreement set by Judge Kathaleen McCormick in Delaware is October 28. The trial had been set to begin on October 17. McCormick said that if the trial date was not settled by October 28, it might be postponed until November.
Musk’s attorneys argued in the Delaware Court of Chancery that the trial should be put on hold until October 28, when he plans to agree to purchase the app. Twitter’s attorneys, however, contended that the company “is entitled to its day in court, to show its right to particular performances and prove [Musk’s] breaches to secure entire redress in the event the transaction should for whatever reason not materialize.”
When Musk’s attorneys requested a lawsuit stay until the sale’s closure, Chancellor Kathaleen McCormick granted their request until the date they estimated the Deal would be finalized. Furthermore, the court stated that if the settlement is not reached by 5 p.m. on October 28, both parties must contact her to schedule trials for November 2022.
Musk Twitter $44 Billion Deal
Musk had urged the judge to temporarily halt the lawsuit the app had filed over their rocky acquisition talks. As requested by Tesla’s CEO, the social media firm did not put a hold on the lawsuit. On Monday, Musk brings back his USD 44 billion acquisition proposal. The CEO of Tesla reportedly offered to acquire Twitter for $54.20 a share. In particular, it was the same reward he had given in April before he pulled the plug in July.
A merger agreed upon six months ago has been in chaos, even though the billionaire and the social media business agree on the price tag of $54.20 per share, or nearly $44 billion. Since Musk offered to acquire the firm, he requested that the trial be postponed. Twitter has protested, arguing that Musk might still back out of the Deal without the threat of litigation. If the parties cannot reach an agreement by McCormick’s deadline, the trial will be moved to November.
It has been reported that legal staff detected financial red flags and advised against accepting Musk’s offer on Monday. Musk seemed to add a new stipulation in his first letter requesting that Twitter abandon its complaint, stating that he was willing to halt litigation and purchase the firm awaiting the availability of cash from banks loaning him money to help acquire Twitter.
Since the April arrangement was predicated on the money being in place, Twitter’s legal team saw this as a possible red flag.
Earlier this week, Musk reversed his decision to spend months litigating in court to cancel a legally binding contract he had signed. He announced on Twitter that he would proceed with the agreement as it was first drafted. Until now, it is unclear what will happen as the app is showing some insecurities, and the Musk team fully commits to closing the Deal.