It has been reported that Elon Musk and Twitter have reached an agreement to postpone the long-delayed deposition that was to take place on Thursday in the ongoing lawsuit between the two parties. This comes as both parties work to close Musk’s $44 billion deal to acquire the social media company following his unexpected decision earlier this week.
Key Facts:
- Bloomberg cited anonymous sources to support their claim that Musk’s legal team and Twitter came to an agreement to postpone the deposition as the parties work on finding a way to terminate their high-profile legal dispute.
- According to the Financial Times, Twitter is attempting to negotiate “precise contractual protections” in order to assure that Musk will not pull out of the deal once again. This indicates that there is a lack of confidence between both parties.
- After refusing to be present at an earlier deposition on September 28, citing “Covid exposure risk,” Musk was scheduled to depose before Twitter’s lawyers in Austin, Texas, on Thursday. Musk’s refusal to attend the earlier deposition was due to the fact that one of the attorneys had recently been in brief contact with a person who tested positive for the virus.
- The Wall Street Journal reports that the parties involved in the continuing legal dispute have not yet come to an agreement over the parameters under which they would put an end to the proceedings.
According to a story in the New York Times, which cited four anonymous individuals, Elon Musk allegedly made a new offer to purchase Twitter at a significantly lower price of $31 billion. According to the article, Twitter rejected this proposal and it prompted Elon Musk to increase his offer to around $39.6 billion—almost 10% lower than the first offer of $44 billion—but this deal did not go through either.
Musk made his most recent u-turn on Monday, announcing that he would stick to his first offer to purchase Twitter for $44 billion. This is the latest development in the continuing battle between Musk and Twitter, which has been going on for many months. In a document that Musk sent to the Securities and Exchange Commission, he said that he would be prepared to acquire Twitter for $54.20 per share provided the company would immediately stop its ongoing lawsuit against him.
The latest u-turn by Musk was most likely an admission on his part that he was going to be unsuccessful in the legal challenge.
