Musk claimed in a regulatory filing Friday evening that he is ending the deal because Twitter is 'in material breach of multiple provisions' of the original agreement, which was signed in April.
Elon Musk wants to terminate his $44 billion deal to buy Twitter - the latest in a whirlwind process in which the billionaire Tesla CEO became the company's biggest shareholder, turned down a board seat, agreed to buy the social media platform and then started raising doubts about going through with the deal. The next chapter in the saga is almost certain to be a court battle.
Musk has for weeks expressed concerns, without any apparent evidence, that there are a greater number of bots and spam accounts on the platform than Twitter has said publicly. Analysts have speculated that the concerns may be an attempt to create a pretext to get out of a deal he may now see as overpriced, after Twitter shares and the broader tech market have declined in recent weeks.
The Twitter Board is committed to closing the transaction on the price and terms agreed upon with Mr. Musk and plans to pursue legal action to enforce the merger agreement. We are confident we will prevail in the Delaware Court of Chancery.Twitter shares fell nearly 6% in after-hours trading Friday immediately following the news, after ending the day down 5%. Tesla stock gained more than 1% in after-hours trading.
Still, Musk's lawyer alleged in the Friday letter that Twitter has"not complied with its contractual obligations" to provide Musk with sufficient data, and said Twitter"appears to have made false and misleading representations upon which Mr. Musk relied" when agreeing to the deal.
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