Elon Musk ended $44 billion bid to acquire Twitter

Elon Musk withdrew the deal with twitter of $44 billion. Musk claim Twitter doesn’t provide the data he asked for. Twitter Team informed us it is the wrong allegation we will sue Musk for it.

The Billionaire and CEO of Tesla, Elon Musk have ended the deal of $44 billion to buy Twitter. The reason lawyer of Musk has given is, that they inquire about some data and the platform failed to provide it in the specified time. After that news, the shares of the public platform dropped by 6%.

However, Twitter’s board chair, Bret Taylor, stated that the firm is committed to finalizing the transaction at the agreed-upon price. And intends to take legal action to enforce the agreement. They exclaim that they will use the power of law for the closing of this deal and they will sue Musk for this.

Ringler alleged that Twitter failed to give Musk the key business information he sought, as required by the contract. Musk earlier stated that he intended to investigate Twitter’s allegations. Roughly 5% of its monetizable daily active users (mDAUs) are spam accounts.

Allegations from the lawyer of Musk

“We are confident we will prevail in the Delaware Court of Chancery,” Taylor wrote. However, the Lawyer of Elon Musk, Ringler has also sent a legal letter to Twitter. “Twitter has failed or refused to provide this information,” Ringler claimed. “Sometimes Twitter has ignored Mr. Musk’s requests, sometimes it has rejected them for reasons that appear to be unjustified, and sometimes it has claimed to comply while giving Mr. Musk incomplete or unusable information.”

Ringler also claimed in the letter that Twitter violated the merger agreement by making “materially incorrect claims.” This charge is based on Musk’s preliminary analysis of spam accounts on Twitter. Twitter has stated that it is not feasible to compute spam accounts purely based on public information and that a team of specialists undertakes a review to arrive at the 5% number.

According to the letter, Musk is “evaluating whether the company’s decreasing commercial prospects and financial outlook constitute a Company Material Adverse Effect offering Mr. Musk a separate and unique basis for terminating the Merger Agreement.”

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