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Tesla CEO Elon Musk announces breaking of $44 billion Twitter deal citing “material breach” of agreement

By Ruchi Upadhyay 
Updated Date

San Francisco: In yet another breaking news coming about Twitter, Tesla and SpaceX boss Elon Musk and billionaire Elon Musk, broke a $44 billion deal with Twitter. This information was given on Friday. According to Reuters, Twitter was unable to provide Musk with information about the fake account as per the deal. So he decided to break the deal. Let us tell you that Twitter’s shares were down 7 percent in extended trading, when Musk offered $ 54.20 per share to the company in April.

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Here, Twitter chairman Brett Tylow said on the micro-blogging platform that the board plans to take legal action to implement the merger agreement. “The Twitter Board remains committed to completing the deal at the price and terms agreed with Musk,” he 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,” Elon Musk’s lawyers said in a letter to Twitter’s board.

Musk did the deal in April
In April, Musk entered into an acquisition agreement with Twitter for $54.20 per share in a transaction of about $44 billion. However, in May Musk put the deal on hold and asked his team to verify the veracity of Twitter’s claim (less than 5% of accounts on the platform are bots or spam).

At the same time, in a filing from Twitter, Musk’s lawyers said that Twitter failed or refused to respond to multiple requests for information on fake or spam accounts, which is fundamental to the company’s business performance. “Twitter is in violation of a number of provisions of the agreement. It appears to have entered into a false and misleading deal with which Musk decided to merge,” the filing said.

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Musk threatened to call off the deal, asking the company to show evidence that spam and bot accounts accounted for less than 5% of users who see ads on social media. The decision is likely to result in a prolonged legal dispute between the billionaire and the 16-year-old San Francisco-based company.

Twitter’s board chairman Brett Taylor said on Saturday that Twitter would sue American billionaire and entrepreneur Elon Musk for buying the social media company on terms he had agreed to. Taylor said, “The Twitter Board is committed to closing the deal on the price and terms agreed with Musk and plans to take legal action to enforce the merger agreement. will be victorious.”

Again in June, Musk openly accused the microblogging website of violating the merger agreement and threatened to shut down the acquisition of the social media company for not providing the data he requested on spam and fake accounts.

Musk has alleged that the true number of spam accounts is likely to be very high, potentially up to 90%. Musk previously said that the acquisition “cannot proceed” unless the company provides “proof” of its spam metrics.

Twitter responds after Elon Musk abandons deal
In response, the chair of Twitter’s board, Bret Taylor, tweeted that the 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. We are confident we will prevail in the Delaware Court of Chancery”.

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