Elon Musk’s purchase of Twitter appears to be in jeopardy as the Tesla CEO’s advisors warned the social media company Friday that he is backing out of their $44 billion deal.
In the filing to Twitter’s chief legal officer, Musk’s team said he was “terminating the Merger Agreement” between the two sides due to a “material breach” of the deal and “false and misleading representations” Twitter made prior to the agreement.
Ever since Musk announced his plan to purchase Twitter for $44 billion back in April, the tweet-happy CEO has accused the social media company of inflating their user base with spam accounts.
“For nearly two months, Mr. Musk has sought the data and information necessary to make an independent assessment of the prevalence of fake or spam accounts on Twitter’s platform,” Musk’s team writes. “Twitter has failed or refused to provide this information.”
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In addition to the battle of the bot data, Twitter’s stock has plummeted since Musk initially offered $54.20 per share; as of press time Friday, the stock was just under $37, nearly a third of its value shaved off from Musk’s offer.
Musk’s termination of the Twitter agreement will likely take the shape of a legal fight over the reported $1 billion penalty he would be forced to pay if he did back away from the deal before its completion and shortly following the news of Musk’s plan to pull out of the deal, Twitter’s Chairman Bret Taylor took to the platform to confirm the company is looking to force the sale via legal means. “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.”
This is a developing story
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