Twitter will sue Elon Musk to enforce the company’s $44 billion purchase deal that the billionaire now wants to cancel, the social network’s president said on Friday.
“Twitter’s board of directors is committed to closing the transaction at the price and terms agreed with Mr. Musk and plans to take legal action to enforce the merger agreement,” tweeted Bret Taylor. “We’re confident we’ll get it done.”
This information comes following Elon Musk indicated that he is ending the agreement reached with the company’s board to buy it, due to “misleading” information regarding the company.
In a letter published by the US securities authorities (SEC), Musk’s lawyers say that Twitter did not respect its commitments assumed in the acquisition agreement for 44,000 million dollarsby not providing -always according to the letter- all the information requested on the number of false accounts on the platform.
“Mr. Musk exercises (the) right to terminate the acquisition agreement and abandons the transaction,” his lawyers said in a letter to the social network, a copy of which was sent to the SEC.
During the Qatar Economic Forum last month, Musk said the Twitter purchase was still on hold for ‘very significant’ issues regarding the number of fake users in the blue bird network.
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“We are still waiting for a resolution of this matter, which is really significant,” he said. Musk via a video link, and assured that he also had questions regarding the company’s debt.
Twitter executives claim that less than 5% of accounts are fake, but the South African businessman is convinced the number is much higher.
for weeks, experts wondered if Musk was looking to withdraw his offer or renegotiate the price of the company downwards.
The parties agreed to compensation for breaking the agreement that can reach 1,000 million dollars.
With information from AFP