Elon Musk said he was terminating the agreement to acquire the social network Twitter for $44 billion due to the company’s breach of the deal terms. Reuters reports.
The decision was prompted by allegations of hiding data on fake accounts and inflating the platform’s audience metrics.
The chairman of Twitter’s board, Bret Taylor, said the board was prepared to go to court to close the deal on the price and terms agreed with Mr. Musk.
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.
— Bret Taylor (@btaylor) July 8, 2022
Twitter shares have fallen 28% since the announcement of Musk’s purchase of the social network in late April. The deal was slated to close by the end of 2022.
Musk planned to create an ‘inclusive arena for freedom of speech’. The move was supported by Twitter founder Jack Dorsey, Coinbase chief Brian Armstrong and Ethereum cofounder Vitalik Buterin.
Earlier in May, Twitter shareholders filed suit against Musk and the social network over the ‘chaotic takeover process.’ The Tesla chief was accused of market manipulation.
In June, Twitter’s board unanimously recommended shareholders approve the purchase of the social network by Musk for $44 billion, although in April it had been strongly opposed and even implemented a plan to defend against a takeover.
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