Elon Musk Seeks Documents From Twitter Co Founder Jack Dorsey Amid $44 Billion Deal Deadlock

WorldĄ¯s richest person Elon Musk is seeking documents from Twitter co-founder Jack Dorsey as the Tesla CEO pursues his legal fight to walk away from his $44 billion deal for the social media company, according to a court filing, as per Reuters report.

45-year-old Dorsey, who resigned as Twitter's CEO in November 2021 and left the companyĄ¯s board in May 2022, was asked for documents and communications about Tesla CEO Elon Musk's April 2022 agreement to buy the company and about spam accounts on the platform, according to a copy of the subpoena (a written order to attend a court of law to give evidence).

Dorsey is currently the CEO of payments processing company Block Inc. Block was co-founded by Dorsey and changed its name last year from Square Inc.

Elon Musk had reportedly told Twitter in July 2022 he was ending the agreement to buy the company for $54.20 per share because he alleged Twitter had violated the deal contract. Twitter and Musk have since sued each other, with Twitter asking a judge on the Delaware Court of Chancery to order Musk to close the deal. A five-day trial is set to start in about two months, on October 17th 2022.

Reuters

The written order sought documents and communications about Twitter's use of mDAU, a measure of active users on its platform. Musk has alleged the company defrauded him by hiding the number of fake accounts in its regulatory filings, which Musk said he used to value the company, the report mentioned. Twitter has been denying Musk's spam allegations.

Billionaire Elon Musk also wanted documents and communications regarding alternative measures of active users that the company has considered and information about the use of mDAU in executive pay and annual targets.

Jack Dorsey had supported MuskĄ¯s buyout offer for Twitter as the two men had reportedly agreed on the need for more transparency for its algorithm and allowing users more control over the content they see.

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Dorsey has also tweeted that he believes Twitter is held back by the advertising model and Musk has said Twitter should rely more on subscription fees and services such as money transfers between users.

Also Read: Elon Musk Says Twitter Board's Salary Will Be $0 If Takesover

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