A tentative agreement reached earlier this week for Tesla and SpaceX CEO Elon Musk to purchase Twitter has reportedly stalled, with Musk’s lawyers claiming that Twitter has refused to accept the proposal.
The announcement comes just two days after Musk and Twitter announced plans to “close the transaction” at the original $44 billion price set in an April 2022 deal. Twitter eventually sued Musk to force him to comply with the terms of that initial deal, after Musk repeatedly attempted to escape it, but Musk’s lawyers now ask that the Oct. 17 trial be halted, according to a filing by Musk’s lawyers, claiming Twitter is now refusing to accept the deal.
Shortly after Musk’s lawyers filed the request, a Delaware judge ordered a stay on the lawsuit until on Oct. 28 to permit the parties to close the deal, according to a Thursday court filing. The decision was made over Twitter’s objections, with the social media giant arguing that agreements with Musk’s team did not guarantee the deal closed in time.
“Twitter will not take yes for an answer,” the filing by Musk’s lawyers reads. “Astonishingly, they have insisted on proceeding with this litigation, recklessly putting the deal at risk and gambling with their stockholders’ interests.”
Lawyers for both Musk and Twitter were working on the details of the deal as recently as Thursday morning, according to the WSJ. Both sides were seeking to halt the proposed trial to allow for more time to complete a deal, but the dialogue between the two had the potential to “change quickly,” the WSJ reported, citing an anonymous source familiar with the matter.
Shares of Twitter shot up dramatically after the tentative deal was announced earlier this week, netting some investors massive windfalls in the process, The Wall Street Journal reported.
Neither Twitter nor Musk’s lawyers immediately responded to a Daily Caller News Foundation’s request for comment.
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