By Axios. Elon Musk is bailing on his $44 billion agreement to buy Twitter, claiming that the social media company hasn’t met its contractual obligations, according to a statement filed with the U.S. Securities & Exchange Commission.
This could set up a massive legal fight between Musk and Twitter, with a Delaware court as the deal’s ultimate arbiter. . .
Since signing the deal, however, he’s argued that Twitter is likely undercounting the number of “bot” accounts on its platform, and demanded access to related data. . .
Musk had agreed to pay Twitter $1 billion were he to walk away, but there were exceptions for “material adverse effects,” which Musk is claiming to have occurred. As such, he’s arguing that he owes Twitter nothing. (Read more from “Elon Musk Terminates $44 Billion Deal to Buy Twitter” HERE)
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Elon Musk Backs Out of Twitter Deal
By New York Post. Tesla Chief Executive Officer Elon Musk said on Friday he was terminating his $44 billion deal for Twitter, saying that the social media company had failed to provide information about fake accounts on the platform. . .
“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,” Musk’s law firm Skadden Arps said in a letter to Twitter.
“Twitter has failed or refused to provide this information. Sometimes Twitter has ignored Mr. Musk’s requests, sometimes it has rejected them for reasons that appear to be unjustified, and sometimes it has claimed to comply while giving Mr. Musk incomplete or unusable information.”
In response, Twitter’s chairman Bret Taylor said the social-media giant is prepared to take Musk to court.
“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,” Taylor tweeted Friday afternoon. “We are confident we will prevail in the Delaware Court of Chancery.” (Read more from “Elon Musk Backs Out of Twitter Deal” HERE)
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