Image Source: CNBC
In the last two weeks, reports about Elon Musk attempting to acquire 100 percent ownership of microblogging platform Twitter has flooded social media.
In an unexpected turn of events, Elon Musk and Twitter were instantly sued on Friday by a Florida-based pension fund in the hopes of delaying Musk’s proposed $44 billion takeover of the social media business.
The Orlando Police Pension Fund says that under Delaware law, Musk cannot complete the buyout until at least 2025, according to a complaint filed in Delaware Chancery Court. The message went on to add that the takeover is only legal if two-thirds of the shares not “owned” by Musk agree.
Musk, who became a “interested investor” after purchasing at least 9% of Twitter’s stock earlier this month, is now anticipated to navigate a takeover procedure and a lawsuit that might derail and thwart his plans.
Musk bought 9% of Twitter earlier this month, making him the social media company’s largest shareholder.
However, after declining the company’s invitation to join the board of directors, Musk stated in a series of tweets that he had launched a $44 billion bid to buy all of Twitter’s shares. He tweeted, “I made an offer.” Following Musk’s declaration, the social media sphere flew into a frenzy, and he later tweeted, “I hope that even my harshest opponents remain on Twitter, because that is what free expression means.”
According to Forbes magazine, Musk, who also leads the electric vehicle firm Tesla and the space exploration program Space X, is the world’s richest person.
The lawsuit also names Twitter and its board of directors, including CEO Parag Agrawal.
The action, which wants to postpone the merger’s completion until at least 2025, also asks the courts to declare that Twitter directors breached their fiduciary duties and recoup legal fees and costs, according to the claimant.
Twitter’s top management has declined to comment on the current case, and Elon Musk’s lawyers have yet to react to a request for comment.
Also, as controversies surround Musk’s interest in Twitter, Musk has refuted and distanced himself from the allegations, following a report that Musk was advised to buy Twitter by former US President Donald Trump, who has been suspended from the social media platform since January 2021, following alleged inciting tweets following his loss in the US Presidential election.
On Thursday, Musk claimed that he had acquired $7 billion in funds for the acquisition, including from Larry Ellison, the Qatar state investment fund, and the world’s largest cryptocurrency exchange. According
Ellison is putting $1 billion into the acquisition, according to a filing with the US Securities and Exchange Commission. Saudi Arabian billionaire Prince Alwaleed bin Talal, who had previously opposed the takeover, agreed to roll his $1.9 billion stake into the deal, according to the filing.
Musk’s $12.5 billion purchase margin loan will be reduced to $6.25 billion, according to the paperwork.
Musk will act as the social media platform’s interim CEO for a few months once the acquisition is done, according to CNBC.