Elon Musk has terminated his $44 billion deal with Twitter, sparking a legal dispute with the social media company over the failed agreement.
According to filings submitted by Mr. Musk’s lawyers, Twitter neglected to respond to numerous requests for information regarding fake or spam accounts on its platform, which is crucial to the performance of the company.
Furthermore, representatives for the Tesla CEO expressed their concern over the departure of high-ranking executives at Twitter since the completion of the deal. “Three executives, including the Head of Data Science, the Vice President of Twitter Service, and a Vice President of Product Management for Health, Conversation, and Growth, have resigned since the Merger Agreement was signed,” the lawyers stated in their filing, deeming these departures as “a substantial breach” of the agreement.
Twitter’s chairman, Brett Taylor, vowed to take legal action against Mr. Musk in order to compel him to fulfill the terms of the deal, which was initially agreed upon in April. In a tweet, Mr. Taylor asserted, “The Twitter Board is committed to finalizing the transaction based on the agreed price and terms with Mr. Musk and intends to pursue legal action to enforce the merger agreement. We are confident in our victory.”
The announcement of the failed deal caused Twitter’s shares to drop by 7% during after-hours trading, reaching a price of $34.25. Mr. Musk had previously agreed to purchase Twitter shares at a price of $54.20 per share.
As per the terms of the agreement, Mr. Musk will be held responsible for a termination fee of $1 billion. Dan Ives, an analyst at Wedbush Securities, commented on the situation, stating, “This is a catastrophic scenario for Twitter and its Board. The company will now be engaged in a protracted legal battle against Musk to recover the agreed deal and potentially receive a minimum breakup fee of $1 billion.”
Denial of responsibility! VigourTimes is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
