Elon Musk has cancelled the Twitter deal on his behalf. The world’s richest man, Elon Musk, offered to buy Twitter for $ 54.20 billion on April 25, although it was later settled at $ 44 billion.
After withdrawing from this deal, Twitter is preparing to sue Elon Musk.
A new twist has come in this high voltage drama of the tech world, which lasted for several weeks. Elon Musk has said that Twitter has broken several provisions of the agreements, so he is withdrawing from the deal.
Elon Musk’s lawyer wrote on Twitter, ‘Mr. Musk is cancelling this merger. They are doing this because Twitter has breached the agreements made with them. Twitter Made Incorrect and Misleading Representations to Elon Musk, and Elon Musk Relied on It During Merger’
Twitter said the deal would be completed … will also take legal action …
After this, it has been said on Twitter that the company wants to complete this merger and is preparing to go to court to get it done.
Twitter chairman Bret Taylor has also made a tweet. He has said, ‘Twitter’s board is committed to close this transaction on the terms and price made with Elon Musk. We will also take legal action to complete this merger agreement. We sincerely hope that Delaware will prevail in the 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
In response to this tweet by Brett Taylor, some Twitter shareholders have written that they want Elon Musk to pay the penalty to Twitter and that he should get out of this deal because they don’t want to see Elon Musk as the owner of Twitter.
The deal was on hold by Elon Musk since May.
It is worth noting that Elon Musk had put the Twitter deal on hold for the last few weeks. Musk said that Twitter should first prove that bots accounts on the platform are less than 5%. Because during the deal, Twitter showed Elon Musk a similar figure.
Will Elon Musk Pay a $1 Billion Penalty?
If the deal between Elon Musk and Twitter is cancelled by one party, then a penalty of 1 billion will have to be paid. If Elon Musk cancels this deal, he will have to pay 1 billion dollars as a penalty to Twitter.
However, if he succeeds in proving the allegation made on Twitter, the matter may turn upside down. In such a situation, they can also take legal action against Twitter.
Spam and bot accounts become the reason for ‘end of the deal’…?
In a filing, Elon Musk’s lawyer said that Twitter was repeatedly asked for information about fake and bot accounts, but the company did not respond or deny it. Elon Musk’s lawyer also said this information is essential for business performance.
Elon Musk believes that the number of bots on the platform is more than the number of bot accounts that Twitter has told. However, it has been consistently maintained by Twitter that the bots on the forum are as many as has been revealed. But Twitter probably failed to provide proof of this.
Elon Musk, at one time, also asked people on Twitter to tell about Twitter’s bots accounts.
Twitter shares broken
After this announcement by Elon Musk, Twitter’s shares fell by up to 6% on Friday. However, later it became 5%. Interestingly, Tesla’s stock rose 1%.
Elon Musk has said in a letter that Twitter has broken the agreements of this deal. Let us tell you that in May, Elon Musk talked about putting the Twitter deal on hold.
It is also interesting that Elon Musk recently had a conversation with the employees of Twitter. Even after talks, however, nothing concrete was being said about this deal.