Elon Musk issued a subpoena to Jack Dorsey’s co-founder and former Twitter CEO in a new bid to bolster his claim to walk away from his $44 billion bid for Twitter.
Dorsey is expected to have evidence of how the social company measured bots and spam accounts, via a subpoena that appeared in court on Monday for the filing of the world’s richest man.
Musk and Twitter are fighting a legal battle in Delaware Chancery Court, with Twitter trying to keep Musk on the original purchase terms.
Musk has contended in the lawful documenting that Twitter has made bogus and deceiving portrayals, including the limit of phony and spam accounts on the help, that add up to a material breach of the treaty.
The subpoenas served to lawyers for Dorsey Musk were requested to mention all documents and communications related to the tech billionaire’s deal as well as the impact or impact of false or spam accounts on Twitter’s business and operations prior to January 2019.
The subpoena also seeks information related to Twitter’s use of monetizable daily active users, a key metric the company introduced with its Q4 2018 results, as noted in Twitter’s SEC filing.
Musk censured Twitter’s utilization of the mDAU metric, charging that it doesn’t precisely mirror the promoting income produced from the informal community’s client bsae.
Dorsey stepped down as CEO of Twitter in November 2021 after more than six years .Dorsey and Musk have had a cordial relationship. Dorsey backed the move after Musk signed a deal to acquire Twitter.
Dorsey wrote in a Twitter thread in April that he wants to be a public good at a protocol level, not a company. Solving the problem of being a company though Elon is the only solution I trust.
In an effort to obtain funding for the Twitter acquisition, Musk said in an SEC filing that he was in discussions with some current holders of Twitter stock, including Dorsey .
Can you According to the company’s 2022 proxy statement, Dorsey owns approximately 18 million shares of Twitter which represent 2.3% of the company’s stock.
Musk’s lawyers also summoned Bruce Falk, Twitter’s former head of consumer products and head of product revenue, on August 19, both of whom were fired by CEO Parag Agarwal in May.
After Musk sealed a $44 billion deal to buy Twitter on April 25, it began to question Twitter’s longstanding estimates that spam and fake accounts account for less than 5% of total active users.
On July 8, Musk’s legal team informed the company that it wanted to strike a deal over Twitter’s alleged inability to prove metrics and stonewalling in providing relevant data. In response, Twitter sued Musk in the Delaware Court of Chancery on July 12.
which sought to compel them to complete a binding agreement to take over the company. Lawyers for Twitter have argued in a legal filing that Musk is looking for an excuse to exit the deal after his personal net worth fell in line with the fall in Tesla’s share price.
The Delaware court has set October 17 as the date to begin the five-day hearing. It is possible that both the parties can settle the dispute beforehand.