Elon Musk sent a letter to the Twitter board Friday in which he announced that he was terminating the $44 billion dollar deal that has been in the works for the past three months. In response, Twitter’s chair, Bret Taylor, said the 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.”
In a legal filing on Friday, Musk’s lawyers emphasized the supposedly misleading spam account figures provided by Twitter and claimed that the real percentage of spam accounts caused Twitter to breach the original contract.
This news comes just weeks after Musk had doubled down on his bid by increasing his equity stake in the acquisition deal which led to many analysts feeling more confident in Musk’s intention to push the deal through.
It remains to be seen how this legal battle unfolds.
Sources used:
- Twitter says it will sue Elon Musk after he sends letter seeking to end $44B acquisition deal, CBC
- Elon Musk says he is terminating $44bn Twitter deal, Financial Times