Twitter responds to Elon Musk for canceling the purchase: threatens to sue him

After Elon Musk announced this Friday that he would be canceling the Twitter purchase, for which he announced last April 44,000 million dollars, to which technology has responded with the threat of a legal battle to consume it. The controversy is due to the number of fake accounts the social network has.

In a document sent by Musk’s lawyers to Twitter’s legal department and published by the US Securities Market Commission (SEC), the billionaire unilaterally canceled the acquisition, arguing that the technology has violated the terms of the agreement.

However, Twitter did not have time to react and minutes after the news was published, its chairman, Bret Taylor, announced that the Board of Directors had planned. “take legal action to perform the purchase agreement “at the price and on the terms” agreed with Musk.

At the end of April, Twitter’s board of directors accepted Musk’s offer to buy for approximately $ 44 billion at $ 54.20 per share, which was a significant premium compared to the stock price at the time and also compared to the current one, as Wall Street slipped into a bearish cycle.

“We are sure to win in the Delaware Court of Chancellery,” added the president of Twitter, who trusts that court dedicated to large commercial disputes. force application of the agreement and may seek financial compensation for the damages.

Faced with the entrepreneur’s allegations, Twitter ensures that his fake account data is correct and has made concessions in recent months to give him access to data sources in your system that allows you to analyze tweets.

Under the agreement, if the purchase is not consumed, there is a $ 1 billion “breakup fee” for the involved party that Musk previously agreed to pay, but there is an exception for “material adverse effect”a concept he supported in his letter to Twitter this Friday.

The Tesla and SpaceX founder said the tech company made “false and misleading” claims in its negotiations and did not provide any information it deems necessary to close the transaction and that for two months has complained about the prevalence of fake or spam accounts on the social network.

Because Elon Musk canceled the deal

The richest man in the world has been dissatisfied with technology on multiple occasions due to this “unresolved” issue and pointed out that on June 6 he had already sent a cancellation “notice” to Twitter and that the “period to remedy” it’s over.

Twitter claims less than 5% of users are fake and spam accounts, something the tycoon considers a “dramatic euphemism” but that he cannot clarify why, according to the complaint, the company has repeatedly “refused” to provide him with that data and ignores his requests in this regard.

Another key to Musk’s retirement is Twitter’s firing of two top executives, downsizing its talent acquisition team and hiring freeze, as well as the recent voluntary departure of three executives, to all who claim not having given their consent. “consent”according to the document.

Shortly after Musk announced his intentions to break the deal, Twitter fell 6% on the stock market and its stock settled at $ 34.58 at 6:30 pm local time (10:30 pm GMT).

Its market capitalization has fallen by 25% since April and has been almost halved in the past year.