September 21, 2023

Binance sued over Elon Musk's refusal to buy Twitter

Binance sued over Elon Musk's refusal to buy Twitter

Twitter has sued the division of the cryptocurrency exchange Binance due to funding allocated to it for takeover of the social network by Elon Musk. It is reported by Bloomberg.

In May, the trading platform provided the businessman with$500 million to close the deal. According to court documents, Twitter's lawyers want to know about the terms of the investment and the billionaire's efforts to syndicate funds.

Summons were also received by potentialMusk's lenders, including Factorial Funds, Benefit Street, Bandera Partners, Founders Fund Growth II Management, a number of Silicon Valley investors, financial advisors from Credit Suisse, Morgan Stanley, Goldman Sachs, JPMorgan and specialty investment bank Allen & Co. Later, that number included Tesla, SpaceX, and Citadel hedge fund founder Ken Griffin.

Twitter asks them for information about privatenegotiations with Musk regarding the sale of the social network, as well as documentary evidence of the billionaire's assumptions about underestimating the number of real users of the platform.

The company's inquiries mention Elon Musk's tweets dated May 15 and 17, in which he, in particular, claims that the proportion of bots on Twitter "may exceed 90% of daily active users."

Binance sued over Elon Musk's refusal to buy Twitter

Binance sued over Elon Musk's refusal to buy Twitter

Data: Twitter.

The social network requested additional information from Musk's lawyers from Skadden, Arps, Slate, Meagher & Flom and McDermott Will & Emery.

The Delaware Court of Chancery granted Twitter a five-day trial in the case. It should start on October 17th.

Recall that in April 2022, Elon Musk acquired a 9.2% stake in Twitter, and later offered to buy the company at a price of $54.2 per share. The management of the social network agreed to the terms.

The billionaire explained the initiative with a desire to create "an inclusive arena for freedom of speech."

However, in May, Musk put the purchase process on hold.after reports of overestimation of the audience of the social network. After that, Twitter shareholders sued because of the "chaotic process" of the takeover of the company, accusing the head of Tesla of manipulating the market.

In July, Musk announced the termination of the agreement to acquire the social network.

In the same month, Twitter filed a lawsuit against the head of Tesla due to his exit from the deal. The platform intends to force the entrepreneur to fulfill obligations and complete the purchase.

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