WebAdmin 2 0 0 3 min to read

Twitter responds to Elon Musk’s cancellation of a $44 billion contract

Elon Musk, the CEO of Tesla, came under fire from Twitter on Monday after he announced late last week that he was canceling his USD44 billion plan to acquire the microblogging and social networking behemoth.

Twitter lawyer William Savitt wrote to Musk’s legal team, “As it has done, Twitter will continue to disclose information properly requested by Mr. Musk under the Agreement and to diligently take all actions required to close the transaction.”

Twitter’s letter follows Musk’s withdrawal from the agreement late on Friday, for a variety of reasons, including that Twitter purportedly underestimates the number of spam accounts using its site.

Reiterating that Musk’s decision to terminate the agreement was “illegal and wrongful,” Savitt continued, “Twitter has breached none of its responsibilities under the Agreement, and Twitter has not suffered and is not anticipated to incur a business material adverse consequence.”

Twitter further stated in the letter that it “reserves all contractual, legal and other rights,” including the right to specifically pursue the Musk Parties’ compliance with the Agreement.

Musk accepted an unsolicited offer to purchase Twitter for USD54.20 per share in late April.

The billionaire said in his letter of termination from Twitter on Friday that the firm had misrepresented user data and that there were far more spam bots using the social media network than it had previously acknowledged.

Twitter denied that assertion, claiming that the proportion of bots to its total daily active users was significantly lower than 5%.

The business “plans to seek legal action to enforce the merger agreement,” Twitter chairman Bret Taylor tweeted on Friday.

Neither side has yet to launch a lawsuit.

At Monday’s market close, shares of Twitter dropped 11% to USD32.65.

Please follow and like us:
error1
fb-share-icon
Tweet 2k
fb-share-icon20
0 0 votes
Article Rating
Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments
error

Enjoy this blog? Please spread the word :)

0
Would love your thoughts, please comment.x
()
x