Elon Musk to acquire social media platform Twitter Inc. for $43 billion
Updated: Feb 13
As a reaction to Musk's recent move to put the Twitter deal on hold, Twitter shareholders filed a lawsuit against him, claiming that he manipulated the stock price downwards. Furthermore, they voted to boot Egon Durban, co-CEO of the private equity firm Silver Lake and close supporter of Musk, from Twitter's board of directors. Twitter’s board, however, refused his resignation believing that he contributes "unparalleled operational knowledge of the industry". By reducing his roles elsewhere, the board hopes that shareholder support for Durban will be restored. Apparently, shareholders sense Twitter's leadership to be lost in this period of transition and demand that the company should investigate Musk's conduct and intention in the continuation of the deal. On the other hand, a letter filed with regulators earlier this week states that Mr Musk believes Twitter to be "actively resisting and thwarting his information rights" regarding the problem with fake accounts. This is a "clear material breach of Twitter's obligations" from his perspective, which could be a signal that he is prepared to terminate the deal, if Twitter doesn't cooperate soon.