Tech

Elon Musk terminates $44 billion Twitter deal

Published

2 years ago

July 9, 2022

World’s richest man, Elon Musk on Friday said he is terminating his $44 billion deal to buy Twitter..

He said he took the decision because the social media company had breached multiple provisions of the merger agreement.

But Twitter said it is taking a legal action against Musk for his action.

Twitter’s chairman, Bret Taylor, said on the micro-blogging platform that the board planned to pursue legal action to enforce the merger agreement.

“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,” Taylor said.

According to Reuters, in a filing, Musk’s lawyers said Twitter had failed or refused to respond to multiple requests for information on fake or spam accounts on the platform, which is fundamental to the company’s business performance.

“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,” the filing said.

The billionaire added that he was walking away because Twitter fired high-ranking executives and one-third of the talent acquisition team, breaching Twitter’s obligation to “preserve substantially intact the material components of its current business organization.”