Musk Moves to Abandon $44 Billion Twitter Acquisition
Elon Musk officially notifies Twitter that he is terminating his $44 billion buyout agreement over disputes regarding spam account data. Twitter's board chair states the company plans to take legal action to enforce the original deal.
Elon Musk officially notifies Twitter that he is terminating his $44 billion acquisition agreement, according to a Friday SEC filing. An attorney representing Musk claims that Twitter fails to provide adequate information about spam accounts on the platform, which prevents the billionaire from properly evaluating the company's business.
Twitter's board chair Bret Taylor responds by stating the company remains committed to closing the deal at the agreed-upon price. Taylor announces that Twitter plans to pursue legal action in the Delaware Court of Chancery to enforce the merger agreement, expressing confidence that the company will prevail in court.
Musk's legal team alleges that Twitter ignores requests for data, provides incomplete information, and makes materially inaccurate representations about its monetizable daily active users. The attorney argues that Musk negotiates specific information rights precisely to review this important data before finalizing the massive transaction, resulting in a 6% drop in Twitter's after-hours stock price.