“Twitter is in material breach of multiple provisions of that agreement, appears to have made false and misleading representations upon which Mr. Musk relied when entering into the Merger Agreement,” read the filing.
The company has reportedly fired back saying that it will sue Musk in order to fulfill the original $44 billion merger.
SAN FRANCISCO (AP) — Twitter says it will sue Elon Musk to complete the $44B merger he just rejected and is “confident” it will prevail.
— philip lewis (@Phil_Lewis_) July 8, 2022
From the very beginning, the deal has been a bit of a roller coaster ride with Musk announcing plans to purchase the popular social networking application, but then placing his plans on hold after concerns with spam accounts.
The world’s richest person wanted Twitter to prove that spam and bot profiles accounted for less than 5% of users on the platform. Now that the company has failed to deliver, it looks like anyone looking forward to Musk owning Twitter can kiss that dream goodbye.
According to the terms and conditions of the deal, Musk will be required to pay a $1 billion break-up fee for not seeing the transaction all the way through.
The 16-year-old San Francisco-based company isn’t going out without a fight. It appears as though both parties are ready to go to bat for the deal now gone awry. Twitter says it is “confident” that a victory will ensue following a legal matchup with the Tesla owner.