Twitter and Musk are headed for an Oct. 17 trial in Delaware, which should determine whether or not Twitter can force the billionaire to go ahead with the acquisition. Twitter has subpoenaed a number of tech investors and entrepreneurs connected to Musk, including prominent venture capitalist Marc Andreessen and David Sacks, the founding director of PayPal. Musk alleged that Twitter failed to provide sufficient information about the number of fake or “spam bot” Twitter accounts and that it breached its obligations under the agreement by firing top executives and laying off a significant number of employees. Musk’s team expects more information about the bot numbers to be revealed in the trial court’s discovery process, when both sides must turn over evidence.
Twitter says Musk has buyer’s remorse
Twitter argues that Musk’s reasons for backing down are simply a cover for buyer’s remorse. Shortly after Musk agreed to pay 38 percent above Twitter’s stock price, the stock market stumbled and shares of electric car maker Tesla, home to the bulk of Musk’s personal fortune, lost more than $100 billion since their value. The subpoena was served last week. It is asking Dorsey for documents and communications related to the acquisition, as well as information about the impact of fake or spam accounts on Twitter’s business and the measurement of daily active users. An attorney representing Dorsey did not immediately return a message for comment Monday.
