Twitter To Sue Elon Musk As He Scraps $44 Billion Takeover Deal
In April, Tesla CEO Elon Musk reached a $44 billion deal to takeover social media platform Twitter but has now pulled out.
In a statement to the US Securities and Exchange Commission (SEC), Musk’s representatives said Twitter had breached the terms of the agreement and “appears to have made false and misleading representations.”
They claimed the social media giant also failed to provide requested data to enable Musk to “make an independent assessment of the prevalence of fake or spam accounts” on the platform.
“Sometimes Twitter has ignored Mr. Musk’s requests, sometimes it has rejected them for reasons that appear to be unjustified, and sometimes it has claimed to comply while giving Mr. Musk incomplete or unusable information,” the statement read.
Musk’s withdrawal from the deal saw shares of Twitter drop by 7% in extended trading.
The deal’s terms require Musk to pay a $1 billion fee if he fails to complete the transaction. However, Twitter’s board is planning to take legal action against Musk instead of accepting the $1 billion fee.
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