Elon Musk is now seeking to end his $44 billion Twitter deal, alleging multiple violations of the agreement. After implying heavily that he no longer wanted the company in tweets attacking Twitter over its bot estimations, Musk’s legal team is taking steps to conclude his $44 billion deal to buy Twitter.
Twitter Deal is Being Terminated Because of the Multiple Breaches of the Agreement
“Mr. Musk is terminating the Merger Agreement because 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, and is likely to suffer a Company Material Adverse Effect,” Musk’s lawyers wrote in a letter to Twitter’s Chief Legal Officer Vijaya Gadde.
Musk attributes to his claims that Twitter is deceiving investors and users about the number of fake accounts on its platform, which the corporation has long estimated to be under 5%. Musk had no evident qualms with Twitter’s bot tally prior to inking the Twitter deal and actually mentioned that he intended to take on the platform’s spam problem as the company’s new owner.
Musk’s legal team proceeds on to claim that Twitter hasn’t presented him adequate access to its data to conduct his own analysis, though it’s not clear how that analysis would vary from Twitter’s own longstanding methods. The letter further states that Twitter told Musk in an unreported phone call that the company comprises suspended accounts in its monetizable daily active user numbers and points to this as proof of his accusations that the company’s counts aren’t above board.
Twitter Plans to Pursue Legal Action to Enforce the Merger Agreement
Bret Taylor, the director of Twitter’s board of directors, responded to Musk’s letter Friday by doubling down on the company’s intentions to see the deal through. “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,” Taylor wrote. Twitter CEO Parag Agrawal retweeted Taylor’s tweet.
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.
— Bret Taylor (@btaylor) July 8, 2022