Chief Executive Officer (CEO) of Tesla and SpaceX, Elon Musk, has decided to pull out of the $44 billion deal to buy Twitter, claiming that the company failed to satisfy him on the matter of fake and spam accounts on the microblogging platform.
According to a filing to the Securities and Exchange Commission (SEC), Musk’s lawyers stated that Twitter did not respond to a series of requests for detailed information on such accounts, which is essential for enhancing the business performance of the company.
Twitter ignored Musk’s requests for the information on many occasions while it rejected them on some occasions without specifying any reasons, the filing added.
The filing also stated that Twitter not only has violated multiple provisions of the Merger Agreement but the company also made false and misleading representations to convince Musk to buy Twitter.
Twitter has not issued an official statement after Musk announced to pull the plug on the $44 billion deal. However, Chairman of Twitter, Bret Taylor, has said that the company will seek legal action against Elon Musk.
It is worth mentioning here that a special clause in the multi-billion dollar deal requires Elon Musk to pay $1 billion to Twitter in case he fails to uphold the Merger Agreement.
Source: Pro Pakistan