Elon Musk on Friday informed the board of Twitter that he is backing out of the deal to buy Twitter for $44 billion. This announcement by Musk will probably be the start of a legal battle between Twitter and one of the richest men in the world.
In April this year, Elon Musk announced his intention to take over Twitter for $44 billion. From the date of the announcement, he has been tweeting about his inability to judge the number of spam accounts due to inadequate information. Twitter, on the other hand, has said that they are open and willing to share all the information that they may require. This matter has been going on for quite some time.
Finally, Elon Musk has stated that he is backing out of this deal as he believes Twitter has breached the terms of their agreement by giving misleading information and statements about the number of span boats on the social network. Twitter has assured Musk that the number of spam boats is less than 5% of its daily active users and according to Musk he believes otherwise. Further, Musk has accused Twitter of a material breach of contract as it has failed to operate its normal course of business. According to him, it has initiated a hiring freeze, fired some senior personnel and witnessed some other major departures.
Bret Taylor, the chairman of the Twitter Board has already made his intentions clear that they are going to take Musk to the Court and make him pay what he has agreed upon. According to Twitter management, they are confident that the Court will take their side as they have not breached their terms which were agreed upon with Elon Musk. Twitter has also advised its employees not to post anything about the deal on Twitter, Slack, or any Social Media as the matter has now become a court case.
This entire saga has been played out on Twitter right from the moment when a prolific Twitter user Elon Musk revealed that he has bought a significant stake in the company which led to his offer for buying the company for $44 billion and now this termination is due to breach of the agreement. We will have to wait to see how this saga unfolds further.