Twitter Will Sue Elon Musk For Pulling Off Deal To Buy Company
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Elon Musk Pulls Out Off Twitter Deal
Elon Musk on Friday pulled the plug on his $44 billion deal to buy Twitter and take it private, a regulatory filing showed. Musk accused the social media giant of “misleading” statements about the number of fake accounts.
Musk also said he was walking away because the company 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 organization.”
He also decided to suspend the deal due to multiple breaches of the purchase agreement. One of them includes “misleading representations over the number of spam bots on the social network.
The Tesla CEO’s team strongly believes that the proportion of spam and fake accounts is “wildly higher” than 5 percent, according to the letter. The Tesla CEO had earlier threatened to walk away from the deal if the company can’t show that less than 5% of its daily active users are automated spam accounts.
According to a prior filing with the SEC, the deal calls for Musk to pay Twitter a $1 billion break-up fee if he terminates the deal.