Tesla CEO Elon Musk trolled after pulling out of $44 billion Twitter deal
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.
FollowIn 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:
