Judge delays lawsuit against Elon Musk and Twitter, gives them until October 28 to complete merger
Judge Kathaleen McCormick of the Delaware Court of Chancery, in charge of litigation between Elon Musk and Twitter, has given the parties until October 28 for the boss of Tesla to buy the social network. Otherwise, the trial originally scheduled for October 17 will take place in November.
A few hours earlier, the multi-billionaire’s lawyers had requested the suspension of the proceedings initiated to force their client to honor his commitment made in the spring to acquire the platform for 44 billion dollars. They said they expect the deal to go through “around October 28”.
While a stay wouldn’t close the lawsuit, Twitter likely doesn’t want to cancel the scheduled trial date until it’s more certain the merger will be complete.
Debt financing would be a sticking point in the negotiations. Elon Musk’s letter to Twitter earlier this week said his offer to honor the original deal was pending receipt of debt funding.
Musk has committed up to $33.5 billion himself. Its filing indicates there will be no problem completing financing for the remainder of the $44 billion purchase price.