Elon Musk now DOESN’T want to buy Twitter, this is what happens next

Elon Musk has backed out of the Twitter acquisition deal after alleged contract breach by Twitter board. Here are all details.

| Updated on: Aug 22 2022, 13:40 IST
Elon Musk has backed out of the Twitter deal, Twitter to take him to the courts (AFP)
Elon Musk has backed out of the Twitter deal, Twitter to take him to the courts (AFP)

Elon Musk has long hoarded the headlines for his surprise Twitter acquisition over the last few months. Now though, he has backed out the mega deal that could have given him control of the world's largest social media platform. The deal worth $44 billion is now hanging by the thread as Elon's team blames the Twitter board to breach the agreement, and Twitter now willing to take Musk to the court in order to complete the deal.

In a filing on July 8 with the Securities and Exchange Commission, Musk's team has claimed that he wants the deal to be terminated as Twitter was in “material breach of their agreement”. He also accuses Twitter of making “false and misleading” statements during the negotiations. “For nearly two months, 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. Twitter has failed or refused to provide this information,” says Musk's legal team.

Elon Musk backs out of Twitter deal

"Twitter is in material breach of multiple provisions of that Agreement, appears to have made false and misleading representations upon which Mr. Musk relied when entering into the Merger Agreement," the filing said.

So far, Elon Musk is yet to comment on this development on his social media feeds, including his Twitter account. Musk, however, has been hinting at putting the deal on hold, claiming the Twitter provided him misleading stats on the matter of spam bots.

Hours after the filing was made, Twitter made it clear that it is going to take Musk to the courts for backing out of the deal. Bret Taylor, the Chairman of Twitter, says, “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.”

Based on the terms of the deal, if Elon Musk eventually cancels the buyout after the court proceedings, he will have to pay a fee of $1 billion on the occasion of not completing the transaction.

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First Published Date: 09 Jul, 08:59 IST
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