In April, Elon Musk, the CEO of Tesla and SpaceX, created a buzz by expressing interest in acquiring Twitter. The acquisition would have been a significant investment, but it would have given Musk full control of the platform. However, Musk’s enthusiasm waned as he raised concerns about the presence of automated accounts (bots) on Twitter and requested more transparency from the platform.
After a series of discussions, Musk announced on Friday that he was no longer pursuing the purchase. His attorney stated that the agreement made between Musk and Twitter’s board had breached several terms.
“Musk has been requesting crucial data to assess the extent of fake or spam accounts on Twitter’s platform for almost two months,” the lawyer explained. “This information is vital for Twitter’s operations and financial performance and is essential for finalizing the merger.”
The failure of Twitter to provide this information led Musk to abandon the deal, with the platform’s stock value dropping by more than 5% in response, hinting at a possible legal dispute between Musk and Twitter.
However, Twitter’s shareholders are dissatisfied with Musk’s decision to step back. Many believe that Musk’s actions were aimed at lowering Twitter’s stock value intentionally, allowing him to renegotiate the terms or withdraw from the deal. In response, shareholders plan to take Musk to court to compel him to fulfill the agreed-upon acquisition.
“The Twitter Board remains committed to completing the transaction as per the agreed price and terms with Mr. Musk, and is ready to engage in legal action to uphold the merger agreement,” tweeted Bret Taylor, the chair of Twitter’s board. “We are confident in our stance and the outcome from the Delaware Court of Chancery.”
Image Source: Elon Musk @ Instagram
