Tesla CEO Elon Musk has announced that he is withdrawing from the deal to buy social media giant Twitter. It has been stated that Twitter has not provided complete information regarding the fake accounts and that the micro-blogging site has violated several provisions of the merger agreement, thus terminating this agreement.
The world’s richest person previously made a $44 billion deal to acquire Twitter. But he has been saying for some time that the deal won’t go ahead until the company shows evidence that it has less than 5 percent of spam accounts, as it says in its report. He said that there are four times more spam accounts than what the company said. He previously stated that he agreed to the purchase agreement because he believed that the information given to the stock exchanges was accurate.
On the other hand, the Twitter board is planning to take legal action to implement the merger agreement. Twitter’s chairman Bret Taylor said, “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.”