ELON Musk filed a motion to end his $44billion plan of buying Twitter. The letter claimed that the company was not complying with its terms. “breached”The merger agreement.
The announcement comes as Musk is in Sun Valley to attend the annual Allen and Company conference. Parag Agrawal, Twitter CEO, is also expected at the conference.
Musk claimed in a letter that Twitter was “not for profit.” “in material breach of multiple provisions”An earlier letter of agreement.
The letter also states that Twitter is being used in the letter. “appears to have made false and misleading representations upon which Mr Musk relied when entering into the Merger Agreement.”
The letter states that Twitter has not fulfilled its contractual obligations.
Musk stated that Twitter did not provide information regarding its bot accounts and spam, as requested by Musk in a May 25th letter.
“The May 25 Letter made clear that Mr Musk’s goal was to understand how many of Twitter’s claimed mDAUs were, in fact, fake or spam accounts,”The letter was stated.
“Twitter has failed or refused to provide this information.”
“Mr Musk has reason to believe that the true number of false or spam accounts on Twitter’s platform is substantially higher than the amount of less than 5% represented by Twitter in its SEC filings.”
According to the termination letters, Musk sought this information three times more, in letters dated June 6, 20,22, June 17, and June 29, 2022.
“For the past month, Mr Musk has been clear that he views Twitter’s non-responsiveness as a material breach of the Merger Agreement giving him the right to terminate the Merger Agreement if uncured,”The letter continues to state.
Musk was not provided with any additional information regarding the financial status of the company, according to the letter.
Twitter Chairman Bret Taylor posted a tweet on Friday afternoon about the termination.
“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 wrote.
“We are confident we will prevail in the Delaware Court of Chancery.”
Twitter shares dropped 6 percent after the news of its planned termination broke Friday afternoon.
Musk was working to finalize a deal to buy Twitter on April 25 for $46.5billion.
Tesla CEO had said previously: “A top priority I would have is eliminating the spam and spam bots and bot armies that are on Twitter.”
Musk also stated that Twitter must be kept private in order to grow and become an actual platform for free speech.
On June 21, it was announced that Twitter’s board recommended unanimously that shareholders approve the proposed $44billion sale.
Musk was the talk of the town when he revealed that he had twins with Neuralink Shivon Zilis in late 2013.
The Sun reached out for comment to Musk’s assistant and lawyer.
The Sun also reached out to Twitter in an attempt to get comment. A spokesperson for the Sun pointed to the statement of the chairman.