Twitter Sues Elon Musk to Force Him to Complete $44 Billion Acquisition

Still, Mr. Musk’s threat of walking away could bring Twitter back to the negotiating table, allowing the billionaire to buy the company at a discount. The two sides could also settle with Mr. Musk paying damages to Twitter. Or he could pay a $1 billion breakup fee and walk away, an option allowed only under certain circumstances, such as if Mr. Musk’s financing fell through.

If Mr. Musk successfully disentangles himself from Twitter, it could be disastrous for the company. Its stock has fallen more than 35 percent below his offer of $54.20 per share. Twitter’s business has also deteriorated in recent months. In May, Mr. Agrawal said in a memo to employees that the company had not lived up to its business and financial goals.

Now that Twitter has sued, Mr. Musk and his lawyers are expected to respond. While the timeline beyond then…