Elon Musk terminated the contract to take over Twitter on Friday. The reason for the decision was to be “false and misleading” information about the company. The lawyers of the multi-billionaire claim that the social network has failed to fulfill its contractual obligations.
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Musk’s lawyers write that Twitter has breached its contractual obligations because it did not provide all the required information on the number of inauthentic accounts and spam. Musk wrote to Twitter on Friday that he was ending an agreement he made with the group’s management due to “false and misleading” information.
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Elon MuskShutterstock
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Elon Musk terminates the contract with Twitter
Twitter has repeated many times in recent weeks that the number of fake accounts on its platform is less than 5 percent. The multi-billionaire and his team believe that the network is lying, and this affects the profitability of his business and thus the value of the company.
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For weeks, experts have debated whether Elon Musk he wanted to withdraw his offer or negotiate a lower price. By abandoning his commitment to buy Twitter, the businessman exposes himself to serious legal action. Both sides agreed to pay severance pay of up to a billion dollars in certain circumstances.
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On April 25, Musk made a final deal with the group’s management to purchase the social network at $ 54.2 per share, or $ 44 billion in total. Since then, Twitter has lost more than a quarter of its value, and Tesla shares have also fallen by almost a quarter during that time.
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photo-source">Main photo source: Al Drago/Bloomberg/Getty Images
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