What Will Elon Musk Do with His New Toy: Twitter? -Tesla CEO Ventures into Social Media with Twitter Purchase $44bn buyout deal-

Twitter announced on Monday that payments to a whistleblower did not breach any obligations under Elon Musk’s proposed $44 billion acquisition of Twitter. It comes after Musk sent a third letter to try and call off the deal.

The tension between tech mogul Elon Musk and social media giant Twitter has escalated to new heights, as the proposed $44 billion takeover bid faces a potential roadblock. Musk’s legal team alleges that Twitter breached its obligations by paying whistleblower Peiter “Mudge” Zatko, leading to their attempt to terminate the acquisition deal.

In response, Twitter stands firm, asserting that no breaches have occurred and expressing its intent to complete the agreement. As shareholders prepare to vote on the matter, the future of the acquisition hangs in the balance, adding complexity to an already intricate relationship.

When Elon Musk first proposed repurchasing Twitter in April, it was met with initial resistance, but Twitter eventually agreed to the deal. As the acquisition process advanced, however, friction emerged between Musk and Twitter over handling fake accounts and spam on the platform. This discord set the stage for a more contentious negotiation process than anticipated.

Amid the acquisition discussions, Peiter “Mudge” Zatko, a whistleblower, came forward with serious allegations against a social media company. In his claims, Zatko pointed to significant privacy, security, and content moderation issues within the platform. The whistleblower’s revelations inevitably caught the attention of both parties involved in the acquisition deal.

Musk’s Termination Attempts

Seizing on the whistleblower’s allegations, Musk’s legal team made three attempts to terminate the acquisition agreement. The first notice, filed on July 8, 2022, claimed that Twitter had failed to meet its contractual obligations. The second attempt came on August 29, 2022, using Zatko’s accusations as an additional reason to halt the deal.
The latest letter, sent on September 9, 2022, reinforced Musk’s desire to cancel the acquisition, citing Zatko’s revelations as further evidence to support their stance. Despite these attempts, Twitter remained resolute, refuting any breach of obligations and asserting its commitment to complete the agreement.

With tension reaching a boiling point, Twitter shareholders will vote on Tuesday to approve or reject Elon Musk’s takeover bid. The outcome of this critical vote will undoubtedly impact the future direction of the acquisition. If shareholders approve the deal, it will signal a green light for Musk’s acquisition plans. However, rejecting it could lead to further legal battles and uncertainties for both parties.

Heading to Trial

In the event of a rejection by shareholders, the Twitter-Musk conflict will head to trial in Delaware. The problem will be the platform for Musk’s attempt to cancel the acquisition unless an amicable settlement can be reached before the scheduled proceedings. The high-stakes nature of the trial will determine whether the purchase moves forward or remains a distant dream for Musk.

Musk will be allowed to include Zatko allegations in his countersuit against her.