The $44 billion plan for Elon Musk to acquire Twitter, a social networking and microblogging company, has been cancelled.
According to a regulatory filing made by the Tesla CEO through his attorneys, Twitter “appears to have made false and misleading claims upon which Musk relied on entering into the Merger Agreement ” and is in serious breach of various agreement clauses.
According to the lawsuit, Musk searched for the information he needed for almost two months to “conduct an impartial assessment of the incidence of false or spam accounts on Twitter’s network.” According to Musk’s attorneys, Twitter has either failed to provide this information or has refused to do so. Twitter has “at times ignored Musk’s requests, at other times rejected them for reasons that appear to be unjustified, and at other times it has claimed to comply while giving Musk incomplete or unusable information,” they said.
The Twitter Board is dedicated to complete the transaction on the price and terms agreed upon with Musk, and plans to take legal action to enforce the merger agreement, according to a tweet from Twitter chair Bret Taylor on Friday (July 7, 2022). . The Twitter Board is dedicated to complete the transaction on the price and terms agreed upon with Musk, and plans to take legal action to enforce the merger agreement, according to a tweet from Twitter chair Bret Taylor on Friday (July 7, 2022). Elon Musk, the richest man in the world, acquired Twitter in a historic $44 billion deal less than three months ago. The company, he said, has “tremendous potential.”
Mr. Musk has since adjusted his position. He took potshots at Twitter’s top officials. He sent off a barrage of tweets mocking the company‘s board. He complained that there were too many spam accounts on the social media platform and that he was unable to understand the problem. He tweeted an emoji of a poop to show his anger. Additionally, Mr. Musk attempted to completely withdraw from the transaction on Friday.
In a statement drafted by his attorneys, Mr. Musk stated that the Twitter agreement was being terminated due to a persistent dispute with the prevalence of spam accounts on the network. He asserted that Twitter appeared to make incorrect claims and that it had failed to disclose information needed to quantify the number of those accounts, which the firm has stated is less than 5%.
Twitter “appears to have made false and misleading claims,” according to Mr. Musk’s attorneys, and the firm “is in significant breach of multiple terms” of the transaction agreement.
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