Twitter Rejects Elon Musk's Third Try to Invalidate His Acquisition of the Company

Peiter "Mudge" Zatko, the former security head of the company, was paid $7 million after he left the company.

The letter was filed with the SEC.

In Section 6.1(e) the Merger Agreement, Twitter covenanted that between signing and closing it would not “except as required pursuant to existing Company Benefit Plans... grant or provide any severance or termination payments or benefits to any Company Service Provider other than the payment of severance amounts or benefits in the ordinary course of business consistent with past practice and subject to the execution and non-revocation of a release of claims in favor of the Company and its Subsidiaries.” The definition of “Company Service Provider” includes Twitter’s former employees. Under Section 7.2(a) of the Merger Agreement, Defendants are not obligated to close if Twitter has not “performed or complied, in all material respects, with its obligations required under this Agreement.”

The company responded with a letter of their own. The September 9, 2022, letter is invalid and wrongful, as was the case with the July 8, 2022, and August 29, 2022, purported notices of terminated employment.

The purchase contract is still valid, despite the fact that Musk and the Musk Parties have repeatedly broken the Merger Agreement. Lawyers for the social networking site wrote that Mr. Musk and the other Musky Parties must comply with their obligations under the agreement.

Musk's legal team tried to void the acquisition because they claimed that Zatko's complaint was in violation of the terms. Musk claimed that the number of bots on the platform was the reason for ending his purchase of the micro-blogging site.

The first attempt failed and was followed by a lawsuit against Musk in the Delaware court. The defendants petitioned to include Zatko's complaint. The trial is scheduled to last five days starting October 17 and will feature the testimony of the whistle blower.

Thankfully, we won't have to wait until then for more Musk drama. There will be a shareholder meeting on Tuesday at 10 a.m. Pacific time: 1p.m. It goes all the way up to the Eastern time zone. At the meeting, stockholders will be asked to either approve or disapprove Musk's acquisition of the platform. If the merger goes through, shareholders will gain a lot, as the company's stock price is currently hovering around 30% higher than the market value.

The lengthy legal battle between Musk and the social networking site has had consequences for the company. The uncertainty surrounding the merger has led to layoffs as well as some employees leaving on their own.