The chief executive officer of Tesla and the world’s richest man, Elon Musk, has come out to say that he is terminating his $44 billion deal to buy Twitter because the social media platform has failed to provide relevant information about fake accounts.
According to Elon Musk’s lawyers, Twitter’s refusal to respond to several requests for information on fake or spam accounts on the platform did not help the proposed deal in any way, as it is key to the company’s business performance.
Elon’s recent pull announcement is another twist in the Twitter takeover saga after he clinched a $44 billion deal for Twitter in April but then put the entire purchase on hold until the social media company decides to prove that spam bots really account for less than 5% of its total users.
This decision will most likely lead to a long protracted legal battle between the billionaire and the 16-year-old San Francisco-based company, and the terms of the deal require the richest man on earth to part with $1 billion breakup fee if the takeover deal is not eventually completed
Musk’s lawyer, Mike Ringler said, “Twitter has not complied with its contractual obligations. Twitter has failed or refused to provide this information. Sometimes Twitter has ignored Mr. Musk’s requests, sometimes it has rejected them for reasons that appear to be unjustified, and sometimes it has claimed to comply while giving Mr. Musk incomplete or unusable information.”
Twitter’s chairman, Bret Taylor, also said the board plans to pursue legal action to enforce the merger agreement. His words, “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.”
source https://www.jbklutse.com/elon-musk-pulls-out-of-44-billion-twitter-takeover-deal/
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