After Twitter failed to give sufficient details regarding the number of false accounts, Elon Musk stated Friday that he will withdraw his contentious $44 billion offer to purchase the social media platform. Twitter promptly responded, announcing that it would sue the CEO of Tesla to uphold the agreement.
The acquisition’s likely unraveling was just the most recent development in a drama between the richest man on earth and one of the most significant social media platforms, and it may signal the start of a protracted court struggle.
Under these conditions, Twitter might have pushed for the $1 billion breakup fee Musk agreed to pay. Instead, it appears prepared to close the deal—which Chief Executive Parag Agrawal has adamantly stated he wants to do—after the company’s board of directors gave its approval.
Musk’s attorney Mike Ringler complained in a letter to Twitter’s board that his client had been looking for information about the frequency of “fake or spam” accounts on the social media site for almost two months.
“Twitter failed to give this information or refused to do so. Twitter has at times ignored Mr. Musk’s demands, at other times rejected them for apparent unreasonable reasons, and at other times claimed to comply while providing Mr. Musk with inaccurate or partial information, according to the letter.
Musk added that the data is essential to Twitter’s operations and financial health and that it is required to complete the deal.
Bret Taylor, the chair of Twitter’s board, responded by tweeting that the board “plans to pursue legal action to enforce the merger agreement” and is “committed to finalizing the acquisition on the price and terms agreed upon” with Musk. We are sure that the Delaware Court of Chancery will rule in our favor.