Judge halts Twitter trial against Elon Musk to allow deal to close
A judge has halted Twitter's lawsuit against Elon Musk until the end of the month, giving the Tesla CEO more time to close the planned $44 billion acquisition of the company.
The judge in Delaware Chancery Court has paused the trial until 5 p.m. October 28.
Musk made a renewed offer to take over the company earlier this week, hoping to end a protracted legal dispute that began when Musk tried to back out of the April deal and Twitter sued. Musk's lawyers then claimed that Twitter refused to accept the Tesla billionaire's bid.
Representatives for Twitter did not immediately respond to messages for comment by the Associated Press.
"Twitter will not take yes for an answer," said the court filing signed by Musk attorney Edward Micheletti. "Astonishingly, they have insisted on proceeding with this litigation, recklessly putting the deal at risk and gambling with their stockholders' interests."
Since Twitter sued Musk to force him to complete the purchase after he tried to back out four months ago, it is unlikely the San Francisco-based company — whose shareholders have voted to approve the deal — will walk away from the agreement.
Rather, it's likely Twitter is seeking assurances from Musk's side that this time he's serious and won't walk away again.
Eric Talley, a Columbia University law professor, tweeted Thursday that Twitter "is absolutely right not to take 'yes' for an answer, and everyone knows why. (They tried that in April and it didn't go so well)." He added that Twitter would, however, take a "certified bank transfer" from Musk.
Wow -- this is the most counterproductive filing I've seen in this case... TWTR is absolutely right not to take "yes" for an answer, and everyone knows why. (They tried that in April and it didn't go so well). TWTR will, however, take a certified bank transfer from @elonmusk. https://t.co/th9kPoXSpr
— Eric Talley (@ProfEricTalley) October 6, 2022
Musk attorneys said that Musk's financial backers "have indicated that they are prepared to honor their commitments" and are working to close the deal by Oct. 28.
Twitter's shares fell $1.91, or 3.7%, to close at $49.39 on Thursday. It was the stock's second day of declines following a surge of more than 22% on Tuesday after Musk made his renewed offer to buy the company.