Elon Musk, the CEO of Tesla, first revealed his intentions to purchase Twitter in April for $44 billion, but he then postponed the deal while he sought additional information regarding Twitter’s spam bots. The world’s richest man is suddenly terminating the transaction, even though Musk had previously stated that it was still possible and may happen at a lesser price.
‘Material breach of various conditions of the contract and ‘false and misleading assertions’ by Twitter are cited by Musk’s team as the reasons for the deal’s cancellation in a filing with the Securities and Exchange Commission of the United States. The social network is also accused of not upholding its contractual responsibilities under the agreement.
According to the petition, Elon Musk repeatedly asked Twitter for information concerning spam bots in order to “conduct an impartial assessment of the frequency of fraudulent or spam accounts on Twitter’s platform,” but the firm refused to comply.
When Elon Musk asked Twitter for this information, it occasionally ignored him and other times denied him for “reasons that appear to be unreasonable.” The business further asserted that it occasionally complied with Musk’s requirements by offering insufficient or useless information. The complete letter can be read here.
Twitter Chairman Mr. Bret Taylor responded by stating that the board of the business is dedicated to consummating the merger at the price and conditions set forth by Musk and that it intends to take legal action to enforce the merger agreement.