Elon Musk, the CEO of Tesla and SpaceX, has chosen to back out of the $44 billion acquisition of Twitter, claiming that the company has not met his demands regarding the issue of phony and spam accounts on the microblogging platform.
In a submission to the Securities and Exchange Commission (SEC), Musk’s attorneys claimed that Twitter failed to respond to numerous requests for specific information on these accounts, which is necessary for improving the company’s financial performance.
According to the filing, Twitter frequently disregarded Musk’s requests for the information while rejecting them on other occasions without providing any explanations.
Additionally, according to the filing, Twitter not only broke several terms of the Merger Agreement but also misled Musk into buying Twitter by making false and deceptive claims.
Following Musk’s announcement to cancel the $44 billion deal, Twitter has not released an official statement. Bret Taylor, the chairman of Twitter, however, has stated that the company will file a lawsuit against Elon Musk.
It is important to note that Elon Musk is required by a special clause in the multibillion-dollar agreement to pay Twitter $1 billion if he violates the Merger Agreement.
