Elon Musk Cancels $44 Billion Purchase of Twitter, Board Prepares to Sue to Force Close Sale

Elon Musk, Founder of Tesla, Richest Person in the World It said he was on the verge of canceling the $44 billion buyout of Twitter because the company had breached the agreement several times.

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

Bret Taylor The president of Twitter tweeted on Friday that ‘Twitter’s board is committed to closing the sale regarding the price and conditions agreed with Mr. Musk and plans to take legal action to enforce the merger agreement.’

Musk’s lawyers said Twitter had failed or refused to respond to requests for information about fake or spam accounts on multiple platforms. which is the basis of the company’s business operations and is required for consideration of the merger agreement.

Musk has repeatedly expressed concern that there are more bots and spam accounts on the platform than Twitter has made public. Analysts speculated the concerns could be an attempt to create an excuse to leave a deal that he might view as overpriced. After Twitter shares and the tech industry have plummeted in recent weeks.

Twitter shares are trading at $36, down nearly 30 percent since Elon Musk announced the acquisition of Twitter and below the $54.20 price per share offered by the deal.

However, Brian Quinn, a professor of law at Boston College, analyzed that Disputes of this nature are typical of mergers and acquisitions. Similar to the merger case of luxury brands Luis Vuitton and Tiffany, in which courts eventually ruled on the acquisition at a lower price.

source

CNN

BBC