Elon Musk has terminated the $44 Billion merger agreement with Twitter citing misleading representation and false information.
According to the latest SEC filing, “Twitter is in material breach of multiple provisions of that Agreement, appears to have made false and misleading representations upon which Mr. Musk relied when entering into the Merger Agreement.”
The letter also said, “Sometimes Twitter has ignored Mr. Musk’s requests, sometimes it has rejected them for reasons that appear to be unjustified, and sometimes it has claimed to comply while giving Mr. Musk incomplete or unusable information,”.
Elon Musk launched his $44 Billion bid around 3 months ago. At first, Twitter disagreed with Musk’s offer and adopted a “poison pill” strategy to stop Musk’s hostile takeover. Later Twitter agreed to sell itself but the deal was on hold for some time because Musk wanted more data on spam counts and even threatened to walk away from the deal if data was not provided.
Later, Twitter agreed to grant Elon Musk access to their “Firehose” API which contains real-time data of almost 500 million tweets posted every day. After that, Musk addressed Twitter employees in a virtual meeting where he talked about job cuts, work-from-home arrangements, and his vision for Twitter.
Now Twitter’s Chairman of the board Bret Taylor plans to sue Musk for backing out of the deal. Hesaid“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.”
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Original source: Rwinkle News
