The judge overseeing the Twitter-Elon Musk trial has agreed to delay the proceedings until the end of October amid a fight over the Tesla CEO’s back-and-forth endeavor to purchase the social media company.
Delaware Court of Chancery Judge Kathaleen McCormick ruled on Thursday that the trial is on hold until Oct. 28 after Musk’s legal team requested a stay to finalize funding. The two parties have until that date at 5 p.m. to complete a deal. If they fail, they will have to appear in court in November.
MUSK PUSHES FOR END OF TRIAL, SAYING TWITTER WON’T ‘TAKE YES FOR AN ANSWER’
“Twitter will not take yes for an answer,” Musk’s legal team argued in a Thursday filing requesting the stay. “Astonishingly, they have insisted on proceeding with this litigation, recklessly putting the deal at risk and gambling with their stockholders’ interests.” Twitter immediately responded, stating that Musk “can and should” close the deal by the end of next week and argued that the court should not take Musk’s offer seriously. Musk says he wants to return to the original $44 billion agreement to buy Twitter at $54.20 a share.
Musk may also run into funding problems. His deal is contingent on whether he can convince funders to provide $13 billion in debt financing to cover the costs of the purchase, Musk’s team said in an Oct. 3 Securities and Exchange Commission filing. At least two banks that initially agreed to provide $1 billion or more have ended talks with Musk to fund his purchase, according to Reuters.
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Musk and Twitter agreed to delay the billionaire’s deposition on Wednesday, two days after Musk sent a letter to Twitter offering to uphold the original deal and price after the two parties resolve the litigation.
