Business

Elon Musk terminates $44 billion Twitter deal, company vows legal fight

Musk's decision is likely to result in a protracted legal tussle between the billionaire and the 16-year-old San Francisco-based company

PGurus Newsdesk

July 9, 2022

Musk's decision is likely to result in a protracted legal tussle between the billionaire and the 16-year-old San Francisco-based company

Elon Musk backs out of $44 billion Twitter deal over fake/ spam accounts

The Tech giant Tesla’s owner Elon Musk said on Friday he was terminating his $44 billion deal to buy Twitter because the social media company had breached multiple provisions of the merger agreement after which Twitter’s chairman, Bret Taylor, said on the micro-blogging platform that the board planned to pursue legal action to enforce the merger agreement.

Bret Taylor tweeted, “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.”

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.

— Bret Taylor (@btaylor) July 8, 2022

In a filing on Friday afternoon with the US Securities and Exchange Commission (SEC), Musk’s team claimed he is terminating the deal because Twitter was in “material breach” of their agreement and had made “false and misleading” statements during negotiations.

“For nearly two months, Musk has sought the data and information necessary to ‘make an independent assessment of the prevalence of fake or spam accounts on Twitter’s platform’. Twitter has failed or refused to provide this information,” Musk’s legal team wrote.

Musk’s decision is likely to result in a protracted legal tussle between the billionaire and the 16-year-old San Francisco-based company.

[With Inputs from IANS]

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