Elon Musk Says He’s Terminating Twitter Deal. He is expected to face legal threats.
Twitter isn’t accepting Musk’s declaration. The chair of Twitter’s board, Bret Taylor, tweeted in response that the 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.”
- Important Points:-
- ⦁ Twitter immediately fired back, saying it would sue the Tesla CEO to uphold the deal.
- ⦁ Twitter could have pushed for a $1 billion breakup fee that Musk agreed to pay under these circumstances.
- ⦁ Musk also said the information is fundamental to Twitter’s business and financial performance and is needed to finish the merger.
Shares of Twitter fell 5% to $36.81, well below the $54.20 that Musk had offered to pay. Shares of Tesla, meanwhile, climbed 2.5% to $752.29.
Musk lawyer Mike Ringler wrote in the letter to Twitter dated Friday that for nearly two months, Musk has sought data to judge the prevalence of “fake or spam” accounts on the social media platform. “Twitter has failed or refused to provide this information. 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,” the letter said. It also said the information is fundamental to Twitter’s business and financial performance, and it’s needed to finish the merger agreement.
Inside Twitter, Musk’s offer was met with confusion and falling morale, especially after Musk publicly criticized one of Twitter’s top lawyers involved in content-moderation decisions.
