He’s not about to cancel the deal without a fight. Twitter Inc. will take legal action against Elon Musk after he formalized the cancellation of the company’s purchase agreement by US $ 44 billion.
In a publication made through his official account of Twitter, the chairman of the firm’s board of directors Bret Taylor mentioned that “They are committed to closing the transaction at the price and terms agreed with Mr. Musk” and plans to take legal action to enforce the merger agreement.
“We are confident that we will prevail in the Delaware Court of Chancery”sentenced Taylor in his tweet.
As minimum, Musk could be hard pressed for a break fee of $1 billionunder the terms of your purchase agreement of the April 25th con Twitter. But the deal gives him limited leeway to walk away and pay just that amount, and it’s unclear whether his complaints about the account data Twitter qualify. The agreement gives the firm the right to try to force him to continue with the acquisition if you are looking to cancel for other reasons.
The reasons for the cancellation
Elon Musk and his advisers explained in the letter sent to Twitter Inc. that the cancellation of the merger agreement would occur for the same reason it was rumored to be in danger a few days ago: the presence of spam and bot accounts on the platform and the company’s poor response to the tycoon to inform him about the status of these bad elements on the social network.
The regulatory document published on Friday indicates that Elon Musk terminate your agreement to purchase Twitter Inc. because the company “is in material breach of multiple provisions of that agreement” and seems to have done “false and misleading representations” when entering into the agreement.
Specifically, Musk demanded more details from Twitter about the presence of harmful accounts for the people who use the platform, mentioning that if it was not proven with evidence that spam accounts and bots represent less than 5% of users exposed to advertising of the social network, would stop the negotiations.
However, the executives of the firm detailed to the press in a Informative session reported by Reuters the past the Thursday June 7 that Twitter detects and eliminates more than a million of this type of account daily, in addition to ensuring that this type of user is well below 5%, a figure that it indicates has not changed in its public presentations since 2013.
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