According to a letter written by one of Elon Musk’s attorneys, the billionaire is canceling the $44 billion acquisition of Twitter.
The social media behemoth “has not met with its contractual commitments,” according to attorney Mike Ringler.
He claimed that because Musk had not received the necessary business information he had sought, he was forced to cut the cord.
Twitter has since clarified that it will sue the CEOs of Tesla and SpaceX to complete the transaction and is “sure” it will prevail in court.
Mr. Musk previously declared his intention to investigate Twitter’s assertions that 5% of its daily active users are spam accounts.
According to people familiar with the situation, he had his doubts that the actual number of bots on the website is far greater.
In a press event yesterday, Twitter assured reporters that it is eliminating spam accounts, claiming that it removes 1 million bots daily.
But Mr. Musk’s attorney announced in a Securities and Exchange Commission filing that he intended to withdraw because he was still not satisfied with the 5 percent figure that had been cited.
According to Ringler, “Twitter has failed or refused to give this information.”
Twitter has occasionally ignored Elon Musk’s requests, rejected them for what seem to be illogical reasons, and claimed to comply while providing Mr. Musk with inaccurate or partial information.
It is unclear if there will be a legal dispute over the deal or if Twitter’s board will accept the $1 billion (£830 million) break-up price.
The Twitter Board is dedicated to completing the transaction on the price and terms agreed upon with Mr. Musk, and plans to take legal action to enforce the merger agreement, according to board chairman Bret Taylor in a tweet. We are sure that the Delaware Court of Chancery will rule in our favor.
The potential collapse of the £36.5 billion agreement is merely the most recent development in a story involving the richest man in the world and one of the most powerful social media companies.
The most of the drama took place on Twitter, where Mr. Musk, who has more than 95 million followers, bemoaned how the service was not achieving its potential as a forum for free speech.
Since Musk’s initial bid for Twitter in April, the stock price has fallen sharply.
Since Musk’s initial bid for Twitter in April, the stock price has fallen sharply. After the billionaire made a series of unclear pronouncements, they fell by more than 10% on Friday.