SAN FRANCISCO. Less than four months ago, Elon Musk, the richest man in the world, had an accident. $44 billion blockbuster buy twitter. He stated that the company had “great potential”.
In the months that followed, Mr. Musk changed his tone. Have sniper from top managers of Twitter. He released tweets mocking the company’s board of directors. He complained that there were too many spam accounts on the social network and that he couldn’t figure out the problem. He wrote a poop emoji to express his displeasure.
And on Friday, Mr. Musk tried to scrap the acquisition altogether.
AT normative documents prepared by his lawyers Mr. Musk said he wants to terminate the deal with Twitter due to ongoing disagreements over the number of spam accounts on the platform. He claimed that Twitter did not provide the information needed to count the number of these accounts, which the company says is less than 5 percent, and that the company appeared to be making inaccurate claims.
“Twitter is in material breach of several provisions” of the deal agreement, he said. Musk’s lawyers said in a statement that the company “appears to have made false and misleading statements.”
mr. Musk, 51, and Twitter did not immediately respond to requests for comment. The company has repeatedly stated that it intends to “close the deal and enforce the merger agreement at the agreed price and on the agreed terms.”
mr. Musk’s move sets him up for a protracted legal battle with Twitter. In April, the billionaire signed a legally binding agreement to buy the company at $54.20 a share and waived due diligence to complete the deal quickly. Terms also included $1 billion breakup fee if the agreement falls apart, and the clause that gives Twitter the right to sue Mr. Musk and force him to complete or pay for the deal as long as the debt financing he’s driven into remains intact.
Twitter shares fell 8% after hours.
This is an evolving story. Keep for updates.