The chief executive officer of Tesla and the world’s richest person, Elon Musk, informed on Friday he was terminating his $44 billion (roughly Rs. 3,49,060 crore) deal to buy Twitter because the social media company had breached multiple provisions of the merger agreement.
Twitter’s chairman, Bret Taylor, said on the micro-blogging platform that the board planned to pursue legal action to enforce the merger agreement. ‘The Twitter Board is committed to closing the transaction on the price and terms agreed upon with Mr. Musk…’, he wrote. Musk’s decision is likely to result in a protracted legal tussle between the billionaire and the 16-year-old San Francisco-based company.
In a filing, Musk’s lawyers said Twitter had failed or refused to respond to multiple requests for information on fake or spam accounts on the platform, which is fundamental to the company’s business performance. ‘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. Musk also said he was walking away because Twitter fired high-ranking executives and one-third of the talent acquisition team, breaching Twitter’s obligation to “preserve substantially intact the material components of its current business organisation.”
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