In an effort to back out of his USD 44 billion commitment to purchase the firm Dorsey helped build, Tesla CEO Elon Musk has subpoenaed his buddy and former Twitter CEO Jack Dorsey, according to court records.
On October 17, Twitter and Musk will face off in a Delaware courtroom. The outcome of the trial will determine whether Twitter has the power to compel Musk to complete the transaction.
Marc Andreessen, a well-known venture capitalist, and David Sacks, the first chief operating officer of PayPal, are just two of the tech investors and business owners linked to Elon Musk who have been subpoenaed by Twitter.
Musk has said that Twitter broke the terms of the arrangement by removing senior management and mass-firing staff while failing to disclose sufficient information about the amount of phony or “spam bot” Twitter accounts.
Musk’s team anticipates that further details regarding the bot numbers will surface during the trial court’s discovery phase, during which both parties are required to turn over evidence.
Twitter claims that Musk’s merely using his reasons for pulling out as a pretext for having second thoughts. The stock market crashed shortly after Musk agreed to pay 38% more than Twitter’s share price, and shares of electric-car manufacturer Tesla, where the majority of Musk’s personal fortune is concentrated, lost more than USD 100 billion of their value.
Last week, the subpoena was delivered. It requests papers and emails pertaining to the purchase from Dorsey as well as details regarding the impact of phony or spam accounts on Twitter’s operations and its method for calculating daily active users.
An inquiry for comment left on Monday went unanswered by a lawyer for Dorsey.
