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Twitter to pursue legal action against Elon Musk’s acquisition withdrawal

With Elon Musk having withdrawn his USD 44PHP 2,582INR 3,729EUR 42CNY 320 billion bid to acquire Twitter. The company has now planned to take legal action in order to enforce its merger agreement with Musk.

Musk

In a recent filing with the Securities and Exchange Commission (SEC), Elon Musk’s team has cited the material breach of multiple provisions of the agreement, and false and misleading representations by Twitter.

In response, Twitter Chairman Bret Taylor has tweeted that the company and its board of directors are committed to closing the transaction with Elon Musk on the agreed price and terms. Furthermore, Taylor stated that the company plans to pursue legal action to enforce its agreement.

Elon Musk is obligated to pay a breakup fee of USD 1PHP 59INR 85EUR 0.95CNY 7 billion if he doesn’t complete the acquisition of Twitter.

Hence, this may be Musk’s attempt in justifying his withdrawal from the deal by claiming that Twitter had failed to provide accurate information about its spam bots in order to avoid paying the breakup fee.

Val Jose Mendoza
Val Jose Mendoza
Hi! I'm VJ Mendoza! Although I just finished my Bachelor's in Nursing, I've always loved tech and to just to get an idea of me, some things I like are anime, video games, sports such as basketball, volleyball and fencing.
  1. Elon Musk’s team cited a material breach of multiple provisions of the agreement, as well as false and misleading representations by Twitter, in a recent filing with the Securities and Exchange Commission (SEC).

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