Elon Musk’s Twitter deal worth $44 billion is no longer one of the biggest tech acquisitions in history. Tesla’s CEO has canceled the offer citing the failure of his demand.
However, the decision was not spontaneous as Musk told earlier he might terminate the deal on one condition.
Elon Musk Cancels Twitter Deal, But Why?
via:dazeinfo
Twitter claimed that the micro-blogging platform has only less than 5% of fake accounts whereas Musk believes the percentage is even higher.
They even gave access of raw data that contains information about daily tweets to prove their claim. Twitter also said around 10 Lakh spam accounts are removed on daily basis from the platform
Also Read: 10 Interesting Facts You May Don’t Know About Elon Musk
On the other hand, Musk and his lawyer believes the company is making false claim and representing a misleading data. The number of fake accounts could be more than 5 percent.
As per the filing, Twitter has also breached several provisions mentioned under the contract.
Elon Musk to Face Legal Action For Cancelling Twitter Deal
Whether the claims are true or not, this billion dollar deal is not going to end smoothly.
Chairman of Twitter Board, Bret Taylor is taking the matter to Delaware Court of Chancery as twitter deal caused huge loss to the platform.
Twitter shares fell around 7% down after Musk decides on cancelling the deal. In a twitter post, Bret confirmed that twitter is going to take legal action against Musk.
Read the post here:
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
Also Read: 8 Companies Owned By Elon Musk From The Boring Company To PayPal, Check All Here
As per the agreement, Musk is liable to pay $1 billion as a break-up fee to Twitter for not completing the transaction.