ELON MUSK TERMINATING $44 BILLION DEAL TO BUY TWITTER
ABC News - July 09, 2022
Elon Musk is terminating his $44 billion deal to buy Twitter, according to a new Securities and Exchange Commission filing.
"Mr. Musk has sought the data and information necessary to 'make an independent assessment of the prevalence of fake or spam accounts on Twitter's platform'" and did not receive it, the filing stated.
Fake accounts have become a sticking point in Musk's rollercoaster bid to acquire the social media platform, with the Tesla CEO previously threatening to end his agreement over concerns about the prevalence of bot and spam accounts.
In the filing on Friday, Musk's attorney claimed that Twitter "is in material breach of multiple provisions of that agreement" and appears to have made "false and misleading representations" when entering into the agreement.
Twitter Chairman Bret Taylor responded Friday that the board is still committed to the terms of the agreement.
"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," he said on Twitter. "We are confident we will prevail in the Delaware Court of Chancery."
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
Musk reached a deal to purchase the platform at $54.20 a share on April 25, after quickly becoming the largest shareholder of Twitter with a 9.2% stake.