(Boursier.com) — The action Twitter plunged 9% in session on Wall Street on Monday, while businessman Elon Musk gave up the takeover of the social network on Friday, ending a suspense that lasted for many weeks. The boss of Tesla, who had threatened to terminate the takeover agreement at 44 billion dollars because of the vagueness reigning over spam and “bot” accounts, therefore carried out his threat.
To explain his decision, he accused Twitter of having violated its contractual obligations by notably providing erroneous or incomplete data on the number of fake accounts.
Legal action?
Twitter board chairman Bret Taylor said the board plans to take legal action to enforce the agreement. “Twitter’s Board of Directors is committed to entering into the Agreement at the price and on the terms agreed to with Mr. Musk,” he wrote.
Lawyers for the Tesla boss responded that Twitter had failed to respond to numerous requests for information about spam accounts and fake accounts, fundamental data for evaluating the company’s performance.
“Twitter violates several provisions of the agreement and appears to have made false and misleading statements upon which Mr. Musk relied in entering into the merger agreement,” the document said.
pic.twitter.com/JcLMee61wj — Elon Musk (@elonmusk), through Twitter
Under the terms of the deal, the billionaire will have to pay a $1 billion severance fee if he doesn’t complete the deal, but observers instead expect a long legal tussle between Elon Musk and the company based in San Francisco.
True to form, Elon Musk reacted via a “tweet” on the social network. “They said I couldn’t buy Twitter. Then they said they wouldn’t provide bot information. Now they want to sue me to buy Twitter. Now they’re going to have to provide the justice the information on the “bots”, can we read in a photomontage, showing the portrait of the billionaire, hilarious in the face of this embroglio.
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