Musk asks Jack Dorsey for Docs in Dispute over Twitter Transaction
Elon Musk seeks documents from Twitter Inc as he continues its legal battle to abandon its $44 billion deal
Wilmington: Billionaire entrepreneur Elon Musk is seeking documents from Twitter Inc co-founder Jack Dorsey, a court filing shows, as the Tesla CEO and SpaceX continue his legal battle to get rid of his involvement in the social media company’s $44 billion in deals for media companies.
Dorsey, who resigned as Twitter’s CEO in November and left the board in May, was asked to provide documents and communications about Musk’s April agreement to buy spam accounts on the company and the platform, according to a copy of the subpoena.
Dorsey, chief executive of payments processing firm Block Inc., did not immediately respond to a request for comment. Founded by Dorsey, Block changed its name from Square Inc last year
Musk, who became the world’s richest man with his stake in Tesla Inc, told Twitter in July that he had terminated an agreement to buy the company for $54.20 a share because he claimed Twitter had breached its contract. Twitter and Musk have since sued each other, with Twitter asking a Delaware judge to order Musk to complete the deal. The five-day trial is scheduled to begin on October 17.
The subpoena asks for documents and communications about Twitter’s use of mDAU, a measure of active users on its platform. He claims the company deceived him by hiding some of the fake accounts in its organizational documents that Musk said he used to evaluate the company.
Twitter has denied Musk’s spam allegations.
He also needs documents and communications about alternatives to active users that the company has considered, as well as information about the use of mDAU in executive compensation and annual goals.
Twitter declined to comment.
Dorsey backed Musk’s takeover bid for Twitter, as the two agreed on the need to increase the transparency of its algorithms and allow users more control over what they see.
Dorsey also tweeted that he believes Twitter is lagging because of its advertising model, and he said Twitter should rely more on services like subscription fees and money transfers between users.
Musk and Dorsey discussed joining Twitter’s board in March before he revealed he had acquired a 9.1% stake in Twitter. He accepted a seat on the board, but before he began his term, he changed tack and offered to buy the company.
Shares of Twitter fell 2.5% to $42.89 late Monday.
Read More News Updates Visit our Site InsightFello.