Tesla and SpaceX founder Elon Musk has announced he is withdrawing from a mega-deal to buy social media giant Twitter due to alleged breaches of the agreement conditions.
Mr Musk announced he was withdrawing the bid saying there “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”.
“For nearly two months, Mr Musk has sought the data and information necessary to ‘make an independent assessment of the prevalence of fake or spam accounts on Twitter’s platform',” the filing read. The merger agreement included a $1.45 billion breakup fee but following Mr Musk’s withdrawal Twitter Chairman Bret Taylor has taken to the social media giant to explain the board’s position.
The Twitter Board is committed to closing the transaction on the price and terms agreed upon with Mr. Musk and plans to pursue legal action to enforce the merger agreement. We are confident we will prevail in the Delaware Court of Chancery.The speculation around Mr Musk’s interest in buying the social media platform began in March when he contacted members of the Twitter board including co-founder Jack Dorsey.On April 4 he bought the 9.
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