Tesla CEO, Elon Musk told Twitter board that a severance of $7 million paid to a whistle-blower who raised concerns about problems facing the micro-blogging platform gives him another reason to pull put from his $44 billion acquisition deal of the firm.
Musk and Twitter Inc., have been going through circles as he claims he was misled about the number of spam and bot accounts on the platform. Twitter Inc., argues that Elon Musk developed buyer’s remorse and is using the bot concerns to get out of the deal.
Elon’s lawyers filed a suit against Twitter on 9th September that seeks to free Musk from the purchase on the grounds that Twitter entered into a separation agreement with Peiter Zatco, the then security chief on June 28 where the company spent $7.75 million dollars for compensation. According to Musk’s lawyers, they learnt about the agreement on 3rd September. Zatco was subpoenaed to testify on the Twitter deal regarding lax security measures, bots and spam accounts on the platform.
Both parties are preparing for a Twitter’s lawsuit trial in October that seeks to force Elon Musk to consummate the deal. Delaware Chancery Judge Kathaleen St. Jude McCormick approved Elon’s request to use Zatco’s allegations in his defense. The judge, however denied Musk’s request to push the trial.
Will Musk succeed in his bid to pull out of the deal? Leave a comment below.