According to a recent report, Tesla CEO Elon Musk and social media platform Twitter are clashing over the terms of the agreement to finalize Musk’s purchase of the company.
The Wall Street Journal reports that Elon Musk’s representatives and Twitter officials are still attempting to come to an agreement on terms to enable Musk’s purchase of the social media firm. An SEC filing says Musk sent a letter to Twitter on Monday stating his intent to proceed with the transaction agreed upon on April 25, once a stay has been placed on all court proceedings. Musk will reportedly be buying twitter at $54.20 a share.
Tesla CEO Elon Musk unveils the new Tesla factory in Fremont, Calif., Wednesday, Oct. 27, 2010. The new Tesla factory is the former NUMMI plant. (AP Photo/Paul Sakuma)
Representatives for Musk and Twitter have reportedly been attempting to work out the details of his proposal this week to stick to the original agreement made in April. Currently, issues about the agreement relate to what would be required from both sides for litigation over the stalled deal to be dropped and whether the deal going ahead is contingent on Musk receiving the debt financing needed to purchase the company.
The two sides have agreed to delay Musk’s deposition which was scheduled to begin on Thursday in Texas as they continue efforts to reach an agreement. A few weeks after Musk initially agreed to the deal in April, he attempted to back out and informed Twitter of his plans to officially terminate the agreement. Twitter sued Musk in an attempt to force him to go ahead with the purchase and the two sides were scheduled to go to trial in Delaware Chancery Court on October 17.
Musk claimed that Twitter misstated the number of “bots” on its service but Twitter claimed that Musk’s assertions of fraud were incorrect and based on a misunderstanding of the way the company tallies bots and fake accounts on the platform.
Musk also claimed that the company failed to provide him with the necessary data related to spam and bots, which Twitter also denied. Twitter claimed Musk was simply looking for any reason to back out of the deal after the company’s shares dropped alongside a broader market decline.
The Delaware Chancery Court judge presiding over the legal battle between Musk and Twitter is reportedly still going ahead with trial preparation despite the ongoing negotiations. Chancellor Kathaleen McCormick ordered Musk’s team on Wednesday to search for any possible electronic messages requested by Twitter as the two sides prepare for a five-day trial in Wilmington, Delaware.
“The parties have not filed a stipulation to stay this action, nor has any party moved for a stay,” the judge wrote Wednesday. “I, therefore, continue to press on toward our trial set to begin on October 17.”
Read more at the Wall Street Journal here.
Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship. Follow him on Twitter @LucasNolan