Tesla CEO Elon Musk has said he was terminating his 44 billion dollar deal to buy Twitter because the social media company had breached multiple provisions of the merger agreement.
In what has sparked a massive public hue and cry, Tesla CEO and the world's richest person, Elon Musk, on Friday said he was terminating his 44 billion-dollar deal to buy Twitter because the micro-blogging site had breached multiple provisions of the merger agreement. In response, Twitter chairman Bret Taylor has vowed to pursue legal action.
"The Twitter Board is committed to closing the transaction on the price and terms agreed upon with Mr. Musk...," he wrote.
Musk's attorneys said in a document that Twitter has ignored or refused to reply to several requests for information on phoney or spam accounts on the site, which is essential to the company's operation.
"Twitter is in material breach of multiple provisions of that Agreement, appears to have made false and misleading representations upon which Mr. Musk relied when entering into the Merger Agreement," the filing said.
The Tesla and SpaceX CEO added he was walking away because Twitter fired high-ranking executives and one-third of the talent acquisition team, breaching the social media platform's obligation to "preserve substantially intact the material components of its current business organization."
Due to Musk's decision, the 16-year-old San Francisco-based business and the billionaire are expected to engage in a protracted court battle.
Instead of a judge directing a transaction to be completed, contested mergers and acquisitions that are brought before Delaware courts typically result in the corporations renegotiating agreements or the acquirer paying the target a settlement to withdraw. This is due to the fact that the target companies are frequently eager to end the uncertainty around their future and move forward.
According to a person familiar with the situation, Twitter, however, is hoping that court procedures will begin in a few weeks and conclude in a few months.
Meanwhile, several Twitter users expressed their shock, anger and views on the micro-blogging site after Musk pulled the plug on the Twitter takeover deal. Many users also carpet-bombed the Tesla and SpaceX CEO with memes. Here's a look at how Twitteratis reacted:
agora que o elon musk desistiu de comprar o twitter a gente pode voltar a postar esse vídeo sem medo de cair a conta pic.twitter.com/npHhST4Vi6
— luscas (@luscas)Elon Musk and twitter deal?
pic.twitter.com/XMPt4SbF1D
Elon Musk when Twitter asked for their money: pic.twitter.com/Cig8l2NzN7
— David C, PA-C (@davecoolatta)Elon Musk to Twitter: pic.twitter.com/rORAlUAtvg
— TRAFON(s Backup Account) (@RiseFallNickBck)Elon Musk’s lawyers spotted collecting this month’s retainer pic.twitter.com/dVAmbJsa14
— Alex Su (@heyitsalexsu)Retweet to scare Elon Musk https://t.co/n4n9uc34lk pic.twitter.com/AzXiZmoHS7
— TrueSpartanMKVI (@TrueSpartanMKVI)Run , run. pic.twitter.com/WiOxyNXM0E
— John (repeat1968) Buss (@repeat1968)Elon Musk terminated his agreement to purchase Twitter
Bots: pic.twitter.com/FfwDIImu9j
pov: you wanted to be saved from the woke gulags but elon musk just terminated the twitter deal pic.twitter.com/M7zi3ix1Z5
— Jack Saint (@lackingsaint)Elon Musk hosting a Tesla career fair pic.twitter.com/my4FW5mGn6
— Kenny Lay (Parody) (@EnronChairman)Actually Elon Musk had every intention of going through with buying Twitter but there was an incident when he was on his way over with the cash... pic.twitter.com/UBlzwemN5E
— Paul Lahticks (@PaulLahticks)Leaked footage of Elon Musk trying to escape the $44B Twitter deal pic.twitter.com/kBQhhE7omr
— Kenny Lay (Parody) (@EnronChairman)Elon musk to the whole world after pulling out of twitter deal pic.twitter.com/vBaQ46cfpo
— Yashodhan (@Yashodhankamble)First there are the funnies. No one other than Elon Musk can enter. And “torn off” might refer to the power supply or the paper itself. pic.twitter.com/FwtGZlk7qn
— Arnab Ray (@greatbong)I can’t believe Elon Musk failed to deliver on a giant promise. Absolutely stunned by this development that has happened literally every time he’s promised something https://t.co/delDMWd6I7
— Mike Drucker (@MikeDrucker)The most important thing to know about Elon Musk not buying Twitter is that there have been eleven mass shootings since Highland Park and it’s long past time to reauthorize the assault weapons ban.
— Andrew Weinstein (@Weinsteinlaw)The people who believed Elon Musk was gonna buy Twitter are the same people still waiting on Trump’s healthcare plan.
— 𝐁𝐞𝐤𝐬 (@antifaoperative)Liza Minnelli has outlived Elon Musk’s deal to buy Twitter. The mogul has terminated his acquisition of the company.
— LizaMinnelliOutlives (@LiZaOutlives)Elon Musk is going to end up buying Twitter for $17 and a box of old Pokémon cards.
— Tim Young (@TimRunsHisMouth)Elon Musk is no longer buying Twitter because he realized he can get it for free in the App Store
— greg (@greg16676935420)