According to Reuters news agency, billionaire Musk’s legal team said Twitter has failed or refused to respond to many requests for information about its spam and virtual accounts.
“Twitter materially violated many of the terms of that agreement, apparently making false and misleading statements on which Mr. Musk relied when entering the merger agreement,” the CEO’s lawyers said. Tesla information.
Billionaire Musk also said he would drop the deal, because Twitter had fired senior executives and a third of its talent recruitment team, in violation of Twitter’s obligation to “fundamentally preserve.” key components of the company’s current business organization”.
Twitter shares fell 6% to $34.58 a share following the news, 35% below $54.20 a share when Musk announced a $44 billion deal to “acquired” Twitter in April.
However, Musk later announced that the agreement would be suspended unless Twitter showed evidence that spam and virtual accounts account for less than 5% of users seeing ads on this social network.
If you want to cancel the contract, the CEO of Tesla does not simply have to pay $ 1 billion in compensation. Musk’s latest decision could lead to a lengthy legal battle between the billionaire and Twitter, a company founded 16 years ago and based in the city of San Francisco (USA).
Responding to news from Mr. Musk’s legal team, Twitter president Bret Taylor said the company will sue to force billionaire Musk to implement the merger agreement.
“The Twitter Board is determined to complete the transaction at the price and terms agreed with Mr. Musk and plans to pursue legal action to enforce this merger,” Taylor wrote on Twitter. .
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