Elon Musk was reported to have concluded his $ 44 billion deal to buy Twitter on Friday. The news came after months of speculating whether or not he would take over the company, but it turns out there are multiple reasons he gave up on his research, including what he considers a violation of their laws.
In a surprising development, Twitter president Bret Taylor announced that the board intends to take legal action against Musk.
“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,” he tweeted. “We are confident we will prevail in the Delaware Court of Chancery.”
In a surprising development, Elon Musk’s lawyers accused Twitter of failing to respond or refusing to respond and leaking information about fake accounts, which are vital factors in the company’s performance.
“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,” the filing wrote.
“Twitter is in material breach of multiple provisions of that Agreement, appears to have made false and misleading representations upon which Mr. Musk relied when entering into the Merger Agreement.”
Tesla CEO Elon Musk said he gave up on his research because Twitter fired senior executives and a third of its talent acquisition team, violating its obligation to “keep the material components of its current business organization substantially intact.”
Twitter explained that Musk has no legal right to cancel the deal without providing a solid reason, rejecting his argument surrounding the spam account information.
The company said it provided Musk with all the information requested.
If Tesla CEO Elon Musk had kept his course and taken control of Twitter, he could have made the promised changes, such as the suspension of Trump’s account by Twitter following the Capitol uprising last year.
Dan Ives, a Wedbush analyst, delved into the matter, saying,“This is a disaster scenario for Twitter. Now the company will battle Musk in an elongated court battle to recoup the deal and/or the breakup fee of $1 billion at a minimum.”
“This soap opera has seen many twists and turns and now ultimately Twitter goes back to the drawing board,” he added. “This was always such a head scratcher to go after Twitter at a $44 billion price tag for Musk and never made much sense to the street, now it ends (for now) in a Twilight Zone ending with Twitter’s Board back against the wall and many on the Street scratching their head around what is next.”
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