Tesla CEO Elon Musk has announced his plans buy the social network Twitter in April for $44 billion But later suspend the acquisition as he waited for more data on Twitter spambots. While Musk said the deal was not out of the question and could be done at a lower pricethe world’s richest man is now terminating the deal.
In a filing with the U.S. Securities and Exchange Commission, Musk’s team cited “serious violations of multiple provisions” of the deal and Twitter’s “false and misleading statements” as reasons for terminating the deal. The social network is also accused of failing to comply with its contractual obligations to the store.
The filing said Musk repeatedly requested data about Twitter’s spambots to “independently assess the occurrence of fake or spammy accounts on the Twitter platform,” but the company did not provide the information.
Twitter has sometimes ignored Musk’s requests for this data, sometimes rejecting it for “what appear to be unjustified reasons”. The company also claimed that it sometimes complied with Musk’s requests by providing incomplete or unusable information. You can read the full letter here.
In response, Twitter Chairman Bret Taylor said the company’s board was committed to closing the deal at the price and terms Musk had agreed to and planned to take legal action to enforce the merger agreement.
Twitter’s board is determined to complete the transaction at the price and terms agreed with Mr. Musk and plans to take legal action to enforce the merger agreement. We are confident that we will prevail in the Delaware court.
— Bret Taylor (@btaylor) July 8, 2022
Musk is contractually obligated to pay Twitter a $1 billion breakup if it cannot complete the acquisition. Therefore, he will have to present strong arguments to justify the withdrawal in order to avoid paying a termination fee to the social network.
This Twitter deal has been a rollercoaster ride from the start, and it remains to be seen whether Twitter will actually pursue legal action to force Musk to complete the acquisition at the agreed price and terms, or whether the two sides will end this saga with a settlement. .