Tesla CEO Mr. Elon Musk announced his plans to buy the social networking site Twitter in April for $ 44 billion, but later suspended the acquisition pending further data on Twitter spam bots. While Musk said the deal was not out of the question and could be concluded at a lower price, the richest person in the world is now closing the deal.
Musk’s team, in a filing with the US Securities and Exchange Commission, cites “a material breach of multiple provisions” of the agreement and “false and misleading statements” by Twitter as reasons for terminating the agreement. The social network is also accused of failing to comply with its contractual obligations towards the deal.
The filing states that Musk has repeatedly asked for data on Twitter spam bots to “make an independent assessment of the prevalence of fake or spam accounts on the Twitter platform,” but the company did not provide this information.
Twitter sometimes ignored Musk’s requests for this data and sometimes turned them down for “reasons that seem unwarranted.” The company also said it complied with Musk’s requests at times by providing incomplete or unusable information. You can read the entire letter here.
In response, Twitter chairman Bret Taylor said the company’s board of directors has pledged to finalize the deal on Musk’s agreed price and terms and plans to pursue legal action to enforce the deal. of fusion.
The Twitter Board agrees to close the transaction at the price and terms agreed with Mr. Musk and plans to pursue legal action to enforce the merger agreement. We are confident that we will prevail in the Delaware Court of Chancellery.
– Bret Taylor (@btaylor) July 8, 2022
Musk is obligated to pay a $ 1 billion breakdown to Twitter as part of the deal if he fails to complete the acquisition. Therefore, he will have to make strong arguments to justify the withdrawal to avoid paying the dissolution fee to the social network.
This Twitter deal has been a roller coaster ride from the start, and it remains to be seen whether Twitter actually proceeds with legal action to force Musk to complete the acquisition at the agreed price and terms, or whether both parties reach an agreement. agreement.
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