Elon Musk terminates Twitter deal: Elon Musk terminates $44 billion Twitter deal

Elon Musk said he was ending his $44 billion deal for Twitter Inc, stating that the social network did not provide information about fake accounts on the platform.

AT
registration At the U.S. Securities and Exchange Commission (SEC), Musk’s lawyers said Twitter failed or refused to respond to multiple requests for information about fake or spam accounts on the platform, which is fundamental to the company’s business performance.

“Musk is terminating the merger agreement because Twitter materially violates numerous provisions of that agreement, appears to have made false and misleading statements that Musk relied on in entering into the merger agreement, and is likely to suffer Material Adverse Consequences to the Company . ”
declared innings.

twitter chairman Bret Taylor went to the microblogging site and said that the company’s board plans to sue to enforce the merger agreement.

“The Twitter Board of Directors is committed to closing the deal at the price and terms agreed with Musk. We are confident that we will win the case in the Delaware Court of Chancery,” Taylor wrote in a tweet.

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Under the terms of the deal, Musk will have to pay a $1 billion gap fee in the event that he does not complete the deal.

Shares of Twitter Inc are down just over 5% at the time of this report.

The deal was canceled
day after Washington Post report — quoting an anonymous source — said that Musk’s team was preparing for a “change of direction,” hinting at a potential deal closure as Musk was unable to determine the percentage of fake Twitter accounts despite being given access to internal data. .

Musk has previously expressed concerns and even hinted that he may back out of the deal due to concerns about what he sees as a plethora of fake accounts.

“Twitter has not fulfilled its contractual obligations. For nearly two months, Musk has been seeking data and information needed to “an independent assessment of the prevalence of fake or spam accounts on the Twitter platform,” it said in a statement.
filing with the US Securities and Exchange Commission noted.

“This information is fundamental to Twitter’s business and financial performance and is necessary to complete transactions under the merger agreement, as it is necessary to ensure Twitter complies with the terms of the closure, to facilitate Musk’s financing and financial planning of the transaction, and to participate in planning. transition for business.

According to
registrationTwitter either ignored Musk’s requests or denied them for frivolous reasons, or claimed to comply by providing Musk with incomplete or unusable information.

Last month, Twitter gave Musk access to its “firehose,” a repository of raw data on hundreds of millions of daily tweets.

“The Twitter soap opera is clearly coming to its end in the coming months as Musk makes the decision to stay (at a lower price) or leave,” Wedbush analyst Dan Ives said in a note to investors.

Musk made the announcement during the Qatar Economic Forum last month.
his purchase on Twitter remained delayed on “very significant” questions about the number of fake users on the social network.

“So we’re still waiting for a decision on this, and it’s a very important matter,” Tesla and SpaceX’s head of research said via video link to the meeting.

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