Elon Musk stated in a letter that he is giving up his Twitter purchase to $44 billion. The reason must be a breach of several points in an agreement with the platform, according to Reuters.
In April, Musk entered into an agreement to buy Twitter. He then suspended the acquisition until the company could prove that the fake spam accounts consisted of less than five percent of the total users.
Twitter’s board of directors is now announcing a lawsuit against the Tesla founder.
– Be sure we will win
Following Musk’s decision, Twitter CEO Brett Taylor said the company would sue him for breach of contract.
Twitter’s board of directors plans to pursue legal action to enforce the merger agreement. Taylor wrote: We are confident we will win.
The news agency reported that the company may demand one billion dollars in exchange for Musk’s withdrawal from the deal AP. The parties have previously agreed to this, but the council appears to be rolling up its sleeves and preparing to fight for the agreement.
Claims not to get an answer
Musk previously expressed his dissatisfaction with the amount of fake spam accounts on the platform.
Twitter itself believes that less than five percent of the accounts on the platform are fake, while Musk, on the other hand, claims the number is much higher.
Musk’s lawyers stated in the letter that Twitter was unsuccessful or refused to respond to several requests where they wanted information about spam accounts.
The share price is affected
Those accounts aren’t the only reason Musk is considering pulling out of the acquisition.
The stock price has fallen dramatically since the takeover offer was made in April, and Musk has also questioned the company’s debt.
After the announcement, Twitter’s share of expanded trading fell six percent.
He had big plans
In April, Musk made no secret of the fact that he had big plans for the platform, and that he wanted to make Twitter “better than ever.”
Twitter has huge potential – I look forward to working with the company and the user community to unlock it.
The company was sold for $54.20 per share, where Musk originally offered the company. This brings the total to $44 billion, or 402 billion kroner.
When the acquisition is complete, Twitter will be a wholly privately owned company, said the press release.
“Web specialist. Lifelong zombie maven. Coffee ninja. Hipster-friendly analyst.”