Twitter shares drop as Elon Musk backs out of deal
Elon waves goodbye to Twitter deal
Billionaire Elon Musk wants to end his $44 billion deal to buy Twitter, according to a letter sent by a lawyer on his behalf to the company’s chief legal officer Friday.
Musk's team, in a filing with USA's Securities and Exchange Commission, cites "material breach of multiple provisions" of the agreement and "false and misleading representations" by Twitter as the reasons for the deal's termination. The social network is also accused of not complying with its contractual obligations towards the deal.
“For nearly two months, Mr. Musk has sought the data and information necessary to ‘make an independent assessment of the prevalence of fake or spam accounts on Twitter’s platform,’”
Musk’s legal team writes.
“Twitter has failed or refused to provide this information.”
Twitter will seek to force Musk to go through with the deal
Legal experts say Twitter has a strong case. The agreement they signed includes a clause that allows Twitter to sue to force Musk to buy the company.