Lagatar24 Desk
New Delhi, July 9: In a sudden turn of events, Elon Musk, the CEO of Tesla and the richest man in the world, announced on Friday that he was cancelling his $44 billion (approximately Rs. 3,49,060 crore) bid to acquire Twitter because the social media business had broken numerous merger agreement clauses.
Bret Taylor, the chairman of Twitter, said on the microblogging site that the board intended to file a lawsuit to enforce the merger deal.
“The Twitter Board is committed to closing the transaction on the price and terms agreed upon with Mr. Musk…,” he wrote.
Musk’s attorneys said in a document that Twitter has ignored or refused to reply to several requests for information on phoney or spam accounts on the site, which is essential to the operation of the company.
In April, Twitter and Musk agreed that each side would be required to pay a $1 billion fine if they decided to back out of the contract. Twitter might have pushed for the break-up fee after the CEO of SpaceX withdrew, but instead it is getting ready for a fight to finish the deal.
“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 added that another reason he was leaving Twitter was because the company had violated its responsibility to “preserve substantially intact the material components of its current business organisation” by firing high-ranking executives and one-third of the talent acquisition team.
