Musk Terminates Deal to Buy Twitter

Based a report on July 9th, Elon Musk wanted to end the $44 billion deal to buy Twitter, according to a letter sent by a lawyer on behalf of Musk to Twitter’s chief legal officer on Friday, due to Twitter has not complied with the merger agreement to provide relevant requested information. Twitter shares down about 6% after the news went public.

Musk accused Twitter of violating the merger agreement, which allegedly contains “materially inaccurate representations.” This accusation was based on Musk’s own inability to verify spam and fake account data on the platform. Twitter said it was impossible to calculate spam accounts from solely public information. A team of experts conducted a review that the spam and fake accounts consist of 5% of the total accounts.

In addition, Twitter failed to comply with its obligations under the agreement to get Musk’s consent before changing its ordinary course of business. Beside that, Musk was not notified about the recent layoffs conducted by Twitter.

Twitter chair of board, 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. In addition, Musk has to pay a $1 billion “breakup fee” to unwind the deal, according to the terms of the agreement.

Miles Guo said earlier about Musk’s acquisition of Twitter is good for Gettr, but the key is whether he can succeed in the acquisition. In fact, it will be a deal that never gets done.