Judge calls a halt to Twitter-Musk trial as deal moves forward

In response to a dispute over Elon Musk’s back-and-forth attempt to acquire the social media company, the judge presiding over the Twitter-Elon Musk trial has agreed to postpone the proceedings until the end of October. 

According to The Washington Examiner, Judge Kathaleen McCormick of the Delaware Court of Chancery decided on Thursday to postpone the trial until October 28 after Musk’s legal team asked for a stay to complete funding. The deadline for the two parties to come to an agreement is that day at 5 p.m. They must appear in court in November if they fail.

“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.”

An immediate response from Twitter

This prompted an immediate response from Twitter wherein they stated that Musk “can and should” close the deal by the end of next week and said that the court should not take Musk’s offer seriously.

The tech billionaire says he wants to return to his original $44 billion agreement to buy Twitter at $54.20 a share.

Musk might experience financial issues as well. According to Musk’s team in a filing with the Securities and Exchange Commission on October 3, the success of his proposal will depend on his ability to persuade lenders to offer him $13 billion in debt financing to pay for the acquisition’s expenses.

Background

According to Reuters, at least two banks that had initially agreed to contribute $1 billion or more to Musk’s purchase have ended negotiations.

Musk has become more public about his political beliefs, including saying Joe Biden is too old for a second term: “How in touch with the people are you? Is it even possible to be?” the billionaire said.

“You don’t want to be too far from the average age of the population because it’s going to be very difficult to stay in touch,” Musk told Roula Khalaf of the Financial Times.

“Maybe one generation away from the average age is OK, but two generations?” he added. “At the point where you’ve got great-grandchildren, I don’t know, how in touch with the people are you? Is it even possible to be?”

He previously said in a tweet tweet that “Biden is a damp sock puppet in human form,” using a sock emoji. Musk told the FT he doesn’t hate former President Donald Trump, the pair having also fought in the past.