Elon Musk told Twitter last Friday that he will no longer be pursuing his $44 billion deal to buy the company. The law firm representing Musk sent a letter to Twitter stating that the company seems to “have made false and misleading representations” and that it “is in material breach of multiple provisions of that agreement.” Musk accuses the company of not providing sufficient data and information for him to analyze the prevalence of fake or spam accounts on the platform.
Since then, Twitter has filed suit against Musk in the Delaware Court of Chancery, stating that Musk signed a binding merger agreement and now “refuses to honor his obligations to Twitter and its stockholders because the deal he signed no longer serves his personal interests.” Musk may very well lose the lawsuit and be forced to go through with the deal. If Musk is successful in exiting the agreement, he will have to pay a $1 billion “breakup fee,” consistent with the terms laid out in the April 25 acquisition agreement.
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