CEO of Tesla, Elon Musk, has decided against buying Twitter for $44 billion. After the microblogging site violated several terms of the merger agreement, Musk stated on Friday that he was cancelling the partnership. The Twitter board has decided to sue Musk to enforce several terms of the acquisition agreement.
Bret Taylor, the chairman of microblogging service Twitter, said that legal action will be taken against Musk for cancelling the $44 billion transaction. The Twitter board is dedicated to finalising the deal with Mr. Musk at the agreed upon price and parameters and will seek legal action to enforce the merger agreement. It is our firm belief that we will be successful in the Delaware Court of Chancery,” Taylor stated.
Musk claims Twitter hid data on fraudulent accounts.
Musk said in a regulatory filing that Twitter ignored his requests for details regarding spam and false accounts. In addition, Twitter did not share details on how it detects and bans users.
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Our communication to you on May 25, 2022 (“May 25 Letter”) said that Mr Musk had been requesting data and information for about two months to “conduct an independent evaluation of the incidence of fraudulent or spam accounts on Twitter’s network.” This data is essential to Mr. Musk’s finance and financial planning for the deal and to Twitter’s transition preparation, as well as critical to Twitter’s business and financial performance and required to close the transactions contemplated by the Merger Agreement. Twitter has either failed or refused to give this information,” the letter to Twitter’s chief legal officer, Vijaya Gadde, reads.
Musk has stated in the past that Twitter is covering up the true amount of spam and phoney accounts. A more accurate estimate may be four times as high as Twitter has reported. But Twitter’s CEO disputed his assertions and offered evidence that just 5% of accounts were automated.
