Billionaire Mr. Elon Musk is seeking to withdraw the $44 billion bid to buy the American microblogging platform, Twitter, alleging multiple breaches of the agreement.
As per reports, the lawyers of Mr. Musk have claimed that Twitter failed to provide information about fake bots or spam accounts, which is integral to the company’s business performance. Mr. Musk asserted that Twitter breached its agreement by firing one-third of the talent acquisition team and several high-ranking executives.
The move comes after a dramatic period of tensions between the company and with the Mr. Musk tweeting several ideas to push for free speech on the platform and increase company income. Twitter says it will take Mr. Musk to court for not completing the $44 billion mergers on which they reportedly agreed.
According to reports, the contract signed between Musk and Twitter shareholders called for a $1 billion breakup fee, provided the Tesla CEO failed to honor the deal. This included reasons such as blockade of the deal by regulators or lack of acquisition financing.
However, the contract made it clear that if Musk terminated the deal on his own, the break-up fee would not be applicable. Aggrieved by the sudden development, Twitter Chairman Mr. Bret Taylor informed that the Board would pursue legal action against Mr. Musk.
Mr. Taylor tweeted that “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.”
Mr. Elon Musk agreed to buy Twitter for $44 billion in cash with shares valued at $54.20 in April 2022.