Twitter, Elon Musk's Oct. 17 trial to proceed, judge says
Musk is scheduled to be deposed on Thursday and Friday
Twitter facing major changes if Elon Musk proceeds with deal: Scott Kessler
Third Bridge tech media and telecom analyst Scott Kessler and The Benchmark Company senior research analyst Mark Zgutowicz react to Elon Musk reportedly moving forward with Twitter purchase on 'The Claman Countdown.'
Twitter and Elon Musk's trial over the Tesla chief executive's attempt to walk away from his $44 billion acquisition of the social media giant will proceed as planned, according to a Wednesday filing from Chancellor Kathaleen McCormick.
On Tuesday, Musk sent a letter to Twitter stating that he intends to proceed with his original $54.20 per share offer agreed to by the parties in April. The letter noted that the move depends on receipt of the deal's debt financing and provided the Delaware Court of Chancery stays Twitter's lawsuit against him and adjourns the upcoming legal trial.
A Twitter spokesperson told FOX Business on Tuesday that it had received Musk's letter and reiterated the company's intention to close the transaction at $54.20 per share.
Tesla founder Elon Musk attends Offshore Northern Seas 2022 in Stavanger, Norway, on Aug. 29, 2022. | Reuters Photos
"The parties have not filed a stipulation to stay this action, nor has any party moved for a stay," McCormick wrote. "I, therefore, continue to press on toward our trial set to begin on October 17, 2022."
Representatives for Musk and Twitter did not immediately return FOX Business' request for comment.
ELON MUSK SAYS TWITTER PURCHASE ‘ACCELERANT’ TO CREATING X, ‘THE EVERYTHING APP’
Musk notified Twitter in July that he was planning to terminate the deal after claiming the company breached its obligations by misrepresenting the number of spam and fake accounts on the platform. Twitter maintains that spam and fake accounts make up less than 5% of its total users.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| TWTR | NO DATA AVAILABLE | - | - | - |
In response, Twitter filed a lawsuit against Musk, accusing him of refusing to honor his obligations under the agreement because "the deal he signed no longer serves his personal interests." Musk proceeded to file a countersuit, which was amended last month to include allegations from whistleblower and Twitter's former security chief Peiter "Mudge" Zatko.
Twitter whistleblower Peiter Zatko testifies at a Senate Judiciary hearing examining data security at risk in Washington, D.C., on Sept. 13, 2022. (AP Photo/Jacquelyn Martin / AP Newsroom)
GET FOX BUSINESS ON THE GO BY CLICKING HERE
The latest filing comes ahead of Musk's rescheduled deposition, which is currently slated to take place Thursday and Friday.
Musk had requested that the deposition be moved from Sept. 26 and 27 due to concerns about one of Twitter's attorneys' possible exposure to COVID-19. Twitter said in a court filing that the examining attorney did not exhibit any COVID-19 symptoms and has repeatedly tested negative.
In September, Musk's deal was approved by Twitter's shareholders. As of the time of publication, Twitter shares are up approximately 20% year to date.