Elon Musk has decided that he wants to back down from his deal with Twitter.
The CEO of major fortune 500 companies claims that the Twitter board violated the terms of the agreement which he outlined to them, and these actions have caused him to pull out of the 44 billion dollar deal that was earlier agreed upon in April.
The Twitter board has made it clear that they are very eager to continue with the deal. At the most, they are willing to fight for the deal to push through because many executives and employees of Twitter have felt either directly or indirectly attacked by the Tesla CEO.
These attacks have affected employee morale, and also, the general stock price of the social media giant has dropped drastically.
The social media giant claims that the last few months have drained them of creativity, focus, and talent because all hands have been on deck to ensure that the deal follows through.
The main reasons why the Tesla CEO has decided to drop the deal are:
Firstly, he claims that Twitter bots are more than 5% as the company claims.
Secondly, he requires additional information about the bots to discuss the statistics with his financial advisors; he claims that Twitter has not given him enough information.
Finally, the company is undermining its business by firing key employees and freezing employment.
On Tuesday, July the 12th, Twitter announced that it is suing Elon Musk in Delaware Court. The basis of this suit is that the CEO violated the terms of the 44 billion dollar merger agreement he made with the company.
The social media giant wants a court order that will force Musk to acquire the company at the agreed-upon price of $54.20/share.
Now there are some predictable outcomes that will surface from this lawsuit.
The court can force Elon Musk to push through with the initial deal and buy Twitter, or he can be fined a breakup fee that will cost him at least one billion dollars. The final outcome is that Elon Musk wins the case and both himself and Twitter walk out of the court with nothing. All we can do now is wait.
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Image Source – _elon_musk on Instagram
