Twitter Inc. is reinforcing its legal department to take up a court case with Tesla’s CEO who reneged on their deal.
Elon Musk has dumped his $44 billion acquisition of the firm as he continues to focus his interest in meme coins. This move comes after Mr. Musk, the CEO of electric carmaker Tesla Motors Inc., announced on the same social media last week that he was no longer interested in acquiring the firm. Twitter is preparing to file a lawsuit this week, alleging that Mr. Musk breached his agreement with the company by abruptly withdrawing his offer. They said the suit would ask a judge to force him to honor his original deal to buy the firm.
Twitter’s decision to take legal action against Mr. Musk is the latest development in a soap opera-like saga that began when the billionaire entrepreneur tweeted that he had “funding secured” to take Twitter private.
Mr. Musk later said he had decided not to pursue the deal because it would be too time-consuming and distracting. The suit against Tesla`s CEO will likely be just the first legal headache for Twitter as it tries to move past the failed acquisition attempt and salvage its relationship with one of its most influential users.
Twitter Shares Sink In Premarket Trading
TWTR shares sank in premarket trading a day after Chief Executive Elon Musk`s reversal in his decision to join Twitter’s board, dealing a blow to one of Wall Street’s most anticipated tech tie-ups. The stock fell 5.2% settling below $40 after Mr. Musk said late Friday that he had abandoned his plan to buy the company for $420 a share, citing opposition from some shareholders.
The withdrawal of Mr. Musk’s offer is a black eye for Twitter, which has been trying to attract new users. The company has been exploring a sale in recent months, but it is now unlikely to find a buyer at the proposed price.
Musk Continues To Push His Intrest In Memecoins
Some investors earlier stated that Mr. Musk’s behavior in the past weeks may have harmed his credibility, raising questions about his ability to run Tesla and SpaceX, two other companies he leads. In an effort to mainstream meme coins, Musk’s BoringCompany will accept dogecoin for rides on its Las Vegas transit system
The new system, still under construction, will transport passengers from the city’s convention center to hotels on the Strip. It is expected to be operational by the end of the year.
Dogecoin, a digital currency that started as a joke, has soared in value this year amid interest from Mr. Musk and other celebrities. The currency has been trading at about $0.69 (69 cents), up from less than a cent at the beginning of the year.
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