American businessman Elon Musk decided to give up the purchase of the Twitter social network for $44 billion. His lawyers reported that the company violated the terms of the contract.
The Associated Press writes about it.
In a letter addressed to Twitterʼs board of directors, Musk writes that the company has not fulfilled its obligations under the purchase agreement. The businessman asked for detailed information and an independent assessment of "the number of fake or spam accounts on Twitter."
"Twitter sometimes ignored Mr. Muskʼs requests, sometimes denied them for reasons that appeared unreasonable, and sometimes claimed to comply with them by providing incomplete or inappropriate information to Mr. Musk," the attorneys said in a statement.
According to the contract, now Musk must pay the company a billion dollars, but it is not known whether Twitter will agree to this, or whether they will want to keep the businessman in this deal through the court.
- On April 5, 2022, Elon Musk bought a 9.2% stake in Twitter, after which the company offered him a seat on the board of directors. Musk refused and on April 14 offered to buy Twitter for $44 billion. According to the plan, they want to close the deal by the end of the year.
- On May 13, shares of Twitter fell by 19% due to the fact that Elon Musk suspended the purchase of the company. The billionaire said the temporary "delay" was due to waiting for detailed information on the number of fake accounts on Twitter.
- In June, Twitterʼs board of directors unanimously recommended that the companyʼs shareholders approve the purchase.