Mega billionaire Elon Musk won’t be taking over the reigns at Twitter as many had thought.
Musk announced that he is terminating the $44 billion deal citing the social media company’s failure to provide information about fake accounts on the platform. Twitter immediately fired back, saying it would sue the Tesla CEO to uphold the deal. The likely unraveling of the acquisition was just the latest twist in a saga between the world’s richest man and one of the most influential social media platforms, and it may portend a titanic legal battle ahead. The court filing from Musk’s legal team said:
“Twitter is in material breach of multiple provisions” of the buyout deal,” and that the company “appears to have made false and misleading representations upon which Mr. Musk relied when entering into the Merger Agreement. 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 could have pushed for a $1 billion breakup fee that Musk agreed to pay under these circumstances. Instead, it looks ready to fight to complete the purchase, which the company’s board has approved and CEO Parag Agrawal has insisted he wants to consummate.