The world’s richest man informed the social media business that he no longer intended to purchase it, marking the latest development in the Elon Musk-Twitter controversy. Bret Taylor, the chairman of Twitter, immediately responded, saying the business intended to file a lawsuit to make sure the $44 billion purchase closed at the agreed-upon price and terms.
Elon Musk, the CEO of Tesla and SpaceX, has been sued by Twitter for terminating a $44 billion purchase agreement. Twitter has retained a top law firm to represent it. Whereas, Quinn Emanuel Urquhart & Sullivan is the law firm that is now defending Musk.
Bret Taylor, chairman of Twitter, stated this on Saturday: “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.”
Due to many violations of the acquisition agreement, Musk made the decision to halt the transaction. The letter states that the Tesla CEO’s team is adamant that the percentage of spam and false accounts is “wildly higher” than 5%.
The letter on Friday stated that “Twitter is in substantial breach of various aspects of the Agreement,” adding, “As further discussed below, Mr. Musk is terminating the Merger Agreement.”
“In short, Twitter has not provided information that Mr Musk has requested for nearly two months notwithstanding his repeated, detailed clarifications intended to simplify Twitter’s identification, collection, and disclosure of the most relevant information sought in Mr Musk’s original requests.”
In a pact worth about $44 billion, Musk and Twitter agreed to be acquired in April at a price of $54.20 per share. Musk, though, placed the agreement on hold in May so that his team could examine Twitter’s assertion that fewer than 5% of accounts on the platform are spam or bots.
In order to corroborate its assertions that bots and phoney accounts make up fewer than 5% of the platform’s active user base, Musk demanded that Twitter disclose over information regarding its testing procedures.
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