Elon Musk, on May 16, had tweeted that the Twitter deal is “temporarily on hold” and the world got confused whether is he joking or being serious.
New Delhi: Tesla and SpaceX CEO Elon Musk, who had inked deal to takeover Twitter, has closed deal with the social media giant. As per the report, billionaire Musk has terminated the deal accusing the Twitter company of ‘misleading’ about the number of fake sites on it. Meanwhile, his backing from the agreement has set a stage for court battle over several issues including like breakup fee. As per the terms of the deal, Musk will have to pay a $1 billion breakup fee if he does not complete the transaction.
According to the reports, Elon Musk’s lawyer has alleged Twitter for failing to respond on requests made regarding information on fake or spam accounts on the micro blogging site. Musk, since beginning, has been mentioning that exact information in this regard is the fundamental to the company’s business performance. Musk has also alleged firing of two top managers without his consent and the action has breached the agreement.
As per the report, Twitter’s top management has said to take the matter into court to enforce the takeover agreement. Twitter chairman Bret Taylo, in a tweet, 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. We are confident we will prevail in the Delaware Court of Chancery.”
In April this year, former Twitter CEO Jack Dorsey has stepped down from the Twitter board putting an end to all the speculations by revealing that he would not return as the CEO of Twitter ever again. Post Dorsey’s exit, Twitter CTO Parag Agrawal was elevated as the CEO of the company.
Later in May, Micro-blogging site had announced to finalise its takeover to Elon Musk who had earlier wished to purchase the social media company. The deal was shaped after Twitter reportedly started considering Musk’s offer as it appears that he managed to convince the board of his proposal.
Twitter founder Jack Dorsey had later extended his support to Elon Musk’s takeover of the micro blogging platform. He had said that Musk’s goal of creating a platform that is “maximally trusted and broadly inclusive. Tesla CEO Musk has taken over the social media platform in a $44 billion cash deal.
Tweeting in support of takeover, Jack had said, “The idea and service is all that matters to me, and I will do whatever it takes to protect both. Twitter as a company has always been my sole issue and my biggest regret. It has been owned by Wall Street and the ad model. Taking it back from Wall Street is the correct first step.”
Later on May 16, Elon Musk had tweeted that the Twitter deal is “temporarily on hold” and the world got confused whether is he joking or being serious, Elon Musk, in a second tweet, said, “Still committed to acquisition”. The reason why the world was confused was because of Musk’s way of tweeting over the last couple of days where he has been loading his tweets with a lot of sarcasm. On May 26, Jack Dorsey had stepped down from the Twitter board putting an end to all the speculations by revealing that he would not return as the CEO of Twitter ever again.