Elon Musk has just decided to terminate his $44 billion dollar agreement with Twitter’s bosses mere months after he announced his plan to buy the company.
The SpaceX CEO didn’t officially become the owner of Twitter when he announced the agreement in April, despite the memes, jokes and plans by Musk himself for future changes.
The multi-billionaire had said that he wanted to unlock Twitter’s potential and make it ‘better than ever’ when he did officially become the owner. However, on Friday 8th July, his lawyer sent a letter to the company revealing the termination.
The reason for termination is, according to lawyer Mike Ringler, due to Twitter allegedly not providing Musk with information he had requested according to their contract. Musk wanted to investigate claims that around 5% of accounts were spam.
Twitter ‘failed or refused to provide this information’, the lawyer said. However, Twitter’s board chair Bret Taylor revealed that the board is still committed to close the transaction.
‘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’ wrote Taylor.
When Musk first reached an agreement with Twitter, he had agreed to pay $1 billion if he chose to back out of the deal. Musk first agreed to buy Twitter for $54.20 a share, but after news of backing out, shares fell five percent to $36.81.
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