Tesla CEO, Elon Musk is formally ending his $44 billion bid to buy Twitter.
This was revealed by Twitter in a fresh SEC filing on Friday, July 8.
The online microblogging service had shared a letter it received from the billionaire’s legal team indicating displeasure following Twitter’s failure to provide sufficient information on the number of spam and fake accounts.
Musk’s lawyers wrote in a letter to Twitter’s Chief Legal Officer Vijaya Gadde;
“Mr. Musk is terminating the Merger Agreement because Twitter is in material breach of multiple provisions of that Agreement, appears to have made false and misleading representations upon which Mr. Musk relied when entering into the Merger Agreement, and is likely to suffer a Company Material Adverse Effect.”
Following this announcement, It is believed that Twitter’s stock will be dramatically affected by this decision as it could go down from the $38 per-share that it currently has to between $25 and $30 per-share.
It seems that Musk is about to get himself into deep trouble out of a simple whim as Twitter said it plans to pursue legal action to enforce the agreement.
If Musk decided to back down, Musk is expected to pay $1 billion as a sanction and safely back down.
However, the recent scenario for Twitter has made them pursue the deal with the tech mogul.
This means that they will go all out to either make it happen or go to trial and fight it in court.
Bret Taylor, one of Twitter’s board members, tweeted on Friday:
“The Twitter Board is committed to closing the transaction on the price and terms agreed upon with Mr. Musk.
“The board plans to pursue legal action to encore the merger agreement. We are confident we will prevail in the Delaware Court of Chancery,”
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