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Twitter sues Elon Musk, steps taken to cancel $ 44 billion deal

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HIGHLIGHTS :

  • Twitter had already announced legal action
  • She always wants to complete this deal
  • But the matter has gone to court due to the withdrawal of Elon Musk.

Twitter had already announced legal action

Elon Musk withdrew from the deal to buy Twitter last Friday. Twitter has filed a lawsuit against this decision. Elon Musk had accused the social media company of failing to provide information about fake accounts. The microblogging platform has already said that it will file a lawsuit against Elon Musk if the deal is not completed, and that step has finally been taken. Twitter’s Extended Trading fell 7 percent after the news surfaced. The company has sued Musk for disrupting its operations and ruining stockholder value.

She always wants to complete this deal

Significantly, Elon Musk has backed out of this deal. Recently, in a letter sent to Twitter, he said that the company has not been successful in giving enough information to Elon Musk. At the same time, there is also a condition in the terms that if Elon Musk refuses this deal, then he will have to pay 1 billion dollars in damages. Elon Musk is already facing a lawsuit accusing him of plagiarizing Twitter shares. In May, Elon Musk said he was putting the deal on hold until the company proved that spam bots or fake accounts accounted for only 5 percent of its total users.

But the matter has gone to court due to the withdrawal of Elon Musk.

In April, Elon Musk made this deal with Twitter for about $ 44 billion at $ 54.20 per share. After that in May, Musk put the deal on hold. He asked his team to investigate Twitter’s claim that it had less than 5 percent bot accounts on the site.

In June, Elon Musk also warned Twitter that he could withdraw from the deal if the company failed to report its fake accounts. In response, Twitter offered Musk access to Firehose’s raw data, which receives millions of tweets a day. Twitter said that this private data prevents genuine accounts from being identified as spam.

Significantly, Elon Musk has backed out of this deal. Recently, he said in a letter sent to Twitter that the company has not been successful in giving enough information to Elon Musk.

On Friday, Musk said he was terminating the deal because Twitter violated the agreement by failing to respond to requests for information regarding fake or spam accounts on the platforms, which is fundamental to its business performance.

Musk did not immediately respond to a request for comment.

The lawsuit accused Musk of “a long list” of violations of the merger agreement that “has cast a pall over Twitter and its business”.

The company has said for years in regulatory filings that it believes about 5 percent of the accounts on the platform are fake. Musk has also alleged that Twitter broke the acquisition agreement when it fired two top managers and laid off a third of its talent-acquisition team.

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