San Francisco: Elon Musk has finally canceled the deal to buy Twitter. He wanted to buy this micro-blogging site for 44 billion dollars. According to the news of Reuters, the world’s richest man and Tesla CEO have blamed Twitter for the cancellation of the deal. He said that Twitter failed to provide information about the fake accounts. It was also accused of breaking several terms of the merger agreement. After this announcement by Musk, Twitter’s shares fell by 7 percent.
Twitter and Elon Musk, a 16-year-old San Francisco company, may now face a protracted court battle as Twitter chairman Brett Tylow have said the company’s board has decided to move the court to enforce the merger agreement. He said that the board is committed to entering into this agreement on the same terms and price as was agreed with Elon Musk.
According to Reuters, Elon Musk’s lawyers said in a petition that despite repeated requests, Twitter failed or refused to provide information about its fake or spam accounts, which is necessary for the company’s business performance. The filing accused Twitter of breaching the agreement, saying that Twitter appeared to have provided false and misleading information on which Musk decided to enter into the merger agreement.
In April, Elon Musk, the world’s richest man, announced the purchase of Twitter for $44 billion. After that, there were many occasions when it was felt that he would stick to this deal or cancel it. Musk later shelved the deal, saying he would not pursue the deal until the social media company proved that its spambot accounts accounted for less than 5% of total users. It is being told that Elon Musk may have to pay a huge amount to cancel this deal. Failure to comply with the terms of the merger agreement could result in a break-up fee of up to $1 billion.
