A judge has stayed Twitter’s lawsuit against Elon Musk until the end of the month, allowing the Tesla CEO further time to complete the $44 billion acquisition of Twitter.
The Delaware Chancery Court judge has postponed the trial until October 28 at 5:00 p.m.
This week, Musk made a new bid to acquire the firm, aiming to conclude a protracted legal conflict that began when he attempted to back out of the April transaction and Twitter filed suit. Musk’s attorneys subsequently claimed that Twitter rejected the Tesla billionaire’s bid.
The Associated Press was unable to obtain a prompt response from Twitter’s representatives.
“Twitter will not accept ‘yes’ for a response,” according to a court document signed by Musk’s attorney, Edward Micheletti. “Amazingly, they have insisted on advancing with this case, recklessly jeopardizing the acquisition and gambling with the interests of their stockholders.”
Since Twitter sued Musk to compel him to complete the acquisition after he attempted to back out four months ago, it is unlikely that the San Francisco-based firm, whose shareholders have approved the sale, will withdraw from the contract.
Rather, it’s more probable that Twitter is seeking Musk’s assurances that he won’t abandon his commitment this time.
Eric Talley, a professor of law at Columbia University, wrote on Thursday that Twitter is “the future.” “is quite justified in not accepting ‘yes’ as an answer, and everyone understands why. (They attempted this in April with poor results.)” However, Twitter would accept a “certified bank transfer” from Musk, he added.
This is the most unproductive filing I’ve ever encountered in this matter… TWTR has every right to not accept “yes” as an answer, and everyone understands why. (They attempted this in April with poor results.) However, TWTR will accept a certified bank transfer from @elonmusk. https://t.co/th9kPoXSpr
October 6, 2022 — Eric Talley (@ProfEricTaley)
Musk’s legal counsel stated that Musk’s financial backers “have indicated they are willing to honor their promises” and are attempting to finalize the deal by October 28.
Thursday’s closing price for Twitter shares was $49.39, a decrease of $1.91, or 3.7%. It was the second day of falls for the stock following a more than 22% increase on Tuesday following Musk’s reiterated offer to purchase the company.