Tesla Boss Elon Musk is backing out of his plan to buy Twitter. In a notice sent to Twitter executives, Musk said he was terminating the $44 billion deal as a result of multiple breaches of the agreement
Musk first announced his intention to buy Twitter in April after launching a hostile takeover. However, the mogul never got around to finalize as Twitter had not been truthful in its claims about the actual number of spammers and bots on the platform.
Mr Musk said he had backed out because Twitter failed to provide enough information on the number of spam and fake accounts.
Following the announcement, Twitter is allegedly set to pursue legal action against Musk.
“The Twitter Board is committed to closing the transaction on the price and terms agreed upon with Mr. Musk,” Twitter chairman Bret Taylor wrote in a tweet.
According to the BBC, the original bid includes a $1 billion break-up fee.
The billionaire started casting doubts on Twitter’s bot accounts figures weeks ago after signing the agreement to buy the company. He revealed plans to conduct his own private assessment to ascertain the actual numbers. The claims were met with mixed reactions, with a section of Twitter stakeholders claiming that he was using the allegations to arm twist the company to negotiate for a lower bid.
“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.” said a memo sent out to Twitter employees as seen by The Verge. .
The memo further asked the employees to refrain from Tweeting about the issue. EWlon Musk had put the deal on hold to investigate the spam bots claims.
Twitter announced in June that it would comply with Musk’s demands and grant him full access to its massive stream of data comprising more that 500 million tweets per day