Elon Musk Backs Out of Twitter Deal Worth $44 Billion
Description:
Elon Musk, CEO of Tesla and SpaceX, has decided to withdraw from the $44 billion agreement to buy Twitter, asserting that the company failed to satisfy him on the issue of fake and spam account holders on the microblogging platform.
Musk"s lawyers stated in a filing to the Securities and Exchange Commission (SEC) that Twitter did not reply to a series of requests for detailed data on such accounts, which is critical for improving the company"s business performance.
Twitter ignored Musk"s requests for information on numerous occasions, while rejecting them on others without providing any explanation, according to the filing.
According to the filing, Twitter not only violated multiple measures of the Merger Agreement, but it also made misleading and false representations to persuade Musk to buy Twitter.
Twitter has not issued a statement statement in response to Musk"s decision to cancel the $44 billion deal. However, Twitter Chairman Bret Taylor has stated that the company will take legal action against Elon Musk.
It is worth noting that a special clause in the multibillion-dollar deal necessitates Elon Musk to pay $1 billion to Twitter if the Merger Agreement is not followed.
