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Elon Musk drops out of $44 billion Twitter deal, social network plans to take legal action

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After announcing his intention to purchase Twitter for $44 billion in April, Tesla CEO Elon Musk later postponed the purchase as he sought further information regarding Twitter spam bots. The world’s richest man, Elon Musk, previously stated that the deal was not off the table and might happen at a lesser price.

A statement from Musk’s team to the Securities and Exchange Commission in the United States cites “material violation of various clauses” of the agreement and “false and misleading assertions” as the reasons for terminating the arrangement. Contractual violations have been made against the social network as well.

When Musk requested data on spambots to “perform an impartial assessment of the incidence of false or fabricated Twitter accounts,” the business failed to deliver this information, according to a lawsuit filed by Tesla CEO Elon Musk.

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Twitter has either ignored or refused Musk’s requests for this data on a number of occasions. According to the corporation, it has complied with Musk’s requirements by giving him with information that is often insufficient or unsuitable. The complete letter is available for your reading pleasure.

Mr. Bret Taylor, Twitter’s Chairman, responded by saying that the company’s board is dedicated to finalizing the purchase on the price and terms agreed upon by Musk, and that it intended to take legal action to enforce the merger agreement.

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If he fails to complete the acquisition, Musk is liable to pay Twitter $1 billion as a break-up fee under the terms of the contract. To avoid paying the social network’s break-up charge, he will need to present compelling justifications for his decision to leave.

There has been a lot of ups and downs in this Twitter transaction, and it remains to be seen if Twitter really takes legal action to force Musk to complete the acquisition at the agreed price and terms, or if both parties resolve this drama.

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