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Twitter vows legal action to enforce the deal.
Elon Musk has pulled out of the $44 billion deal to become the new owner of Twitter, a social media and micro-blogging platform.
The Tesla CEO, through his lawyers, in a regulatory filing said Twitter is in material breach of multiple provisions of the agreement and “appears to have made false and misleading representations upon which Musk relied when entering into the Merger Agreement…”
The filing revealed that Musk, for nearly two months, had sought data and information necessary to “make an independent assessment of the prevalence of fake or spam accounts on Twitter’s platform.”
Musk’s lawyers said Twitter has failed or refused to provide this information, “sometimes it ignored Musk’s requests, sometimes it rejected them for reasons that appear to be unjustified, and sometimes it has claimed to comply while giving Musk incomplete or unusable information.”
The Twitter Board is committed to closing the transaction on the price and terms agreed upon with Mr. Musk and plans to pursue legal action to enforce the merger agreement. We are confident we will prevail in the Delaware Court of Chancery.
— Bret Taylor (@btaylor) July 8, 2022
Twitter chairperson Bret Taylor tweeted on Friday (July 7, 2022): The Twitter Board is committed to closing the transaction on the price and terms agreed upon with Musk and plans to pursue legal action to enforce the merger agreement.
Twitter deal temporarily on hold pending details supporting calculation that spam/fake accounts do indeed represent less than 5% of usershttps://t.co/Y2t0QMuuyn
— Elon Musk (@elonmusk) May 13, 2022
The deal’s completion was majorly dependent on the number of fake and spam accounts on Twitter. Musk had put the deal “temporarily on hold” in May 2022 because he was waiting for data on these accounts.
This hold on the deal came a month after Musk had acquired Twitter, for $54.20 per share in cash, in a transaction valued at approximately $44 billion.
