Tesla CEO Elon Musk has drop the company $44 billion acquisition of Twitter. Musk announced on Friday that he was terminating the agreement because the microblogging site had violated several provisions of the merger agreement. The Twitter board of directors is now planning to sue Musk in order to enforce several provisions of the merger agreement.
Twitter chairman Brett Taylor posted on Twitter that the micro-blogging site is planning to take legal action against Musk to pull out of the $44 billion deal. “The Twitter Board is committed to closing the transaction on the price and terms agreed with Mr. Musk and plans to take legal action to enforce the merger agreement. We are confident we will win in the Delaware Court of Chancery ,” Taylor wrote.
Musk claims that Twitter failed to provide information about fake accounts.
Musk claimed in a regulatory filing that Twitter refused to provide information about fake or spam accounts on its platform despite repeated requests. Twitter also did not provide details on its processes for identifying and suspending users.
"For nearly two months, Mr. Musk has been seeking the data and information required to "make an independent assessment of the prevalence of fake or spam accounts on Twitter's platform" (our letter to you dated May 25, 2022 (the "May 25 Letter")).
This information is critical to Twitter business and financial performance, and it is required to complete the transactions contemplated by the Merger Agreement in order to ensure Twitter satisfaction of the closing conditions, to facilitate Mr. Musk financing and financial planning for the transaction, and to engage in business transition planning. "Twitter has failed or refused to provide this information," read the letter to Vijaya Gadde, Twitter legal head.
Musk previously claimed that Twitter conceals the true number of spam and bogus accounts. It could be more than 20%, or four times what Twitter has stated. Twitter CEO, on the other hand, refuted his claims and provided evidence of only 5% of bot accounts.
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