Home » US business news » Elon Musk draws former Twitter CEO Jack Dorsey into takeover court battle

Elon Musk draws former Twitter CEO Jack Dorsey into takeover court battle

By Nithya Bose in US business news, posted August 24, 2022

Former Twitter CEO Jack Dorsey has been drawn into Elon Musk's court battle as the Tesla billionaire continues to fight to back out of the $44 billion deal.

Elon Musk's legal team has subpoenaed former Twitter CEO Jack Dorsey and is asking for documents related to the effect of fake or spam accounts on Twitter’s business.

The subpoena, which was issued last week, also seeks documents and communications related to the acquisition from Dorsey.

Twitter and Musk are scheduled to appear in Delaware court on October 17 to determine if Twitter can compel the Tesla CEO to close the deal.

Dorsey's subpoena is one of several filed by Musk's team and it is the latest sign that the legal battle between both sides is heating up.

Twitter has subpoenaed a number of people close to Musk who include venture capitalist Marc Andreessen and PayPal founding COO David Sacks.

The billionaire is also attempting to find information about Twitter’s use of monetizable daily active users, or MDAUs, as a key metric and other metrics it might use to measure user or advertiser engagement.

Musk has argued that the social media platform did not provide sufficient data on the number of bogus or spam bot accounts.

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He also says the social media giant has violated its contractual obligations by replacing top executives and slashing a large number of employees.

Musk's team expects more data regarding the bot counts will be disclosed during the trial court discovery process when both parties must hand over evidence.

Twitter says Musk's reasons for withdrawing are simply a case of buyer's remorse.

The stock market fell shortly after Musk agreed to pay 38 percent more than Twitter's stock price.

As a result, Tesla shares, which hold the majority of Musk's personal fortune, have lost more than $100 billion in value.

A lawyer for Dorsey did not immediately reply to a request for comment.

Source: The Washington Post

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