Elon Musk Terminates $44 Billion Deal To Buy Twitter
Late on Friday, Elon Musk announced in a 13D filing that he is terminating his Twitter merger agreement, claiming that “Twitter is in material breach of multiple provisions of that Agreement, appears to have made false and misleading representations upon which Mr. Musk relied when entering into the Merger Agreement, and is likely to suffer a Company Material Adverse Effect.”
Musk had clinched a deal for Twitter in April but then put it on hold until the company proved that spam bots accounted for less than 5% of its total users.
Twitter’s Board of Directors later announced that they intend to close the transaction with Musk at $54.20 per share, and that they plan to pursue legal action to enforce the agreement.
The chairman of Twitter’s board Bret Taylor posted the following tweet, adding that the board is “confident it will prevail in Delaware Court of Chancery.”
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.
— Bret Taylor (@btaylor) July 8, 2022
Twitter shares fell 6 percent in extended trading after Musk announced he would terminate the deal.
Elon Musk is no longer buying Twitter because he realized he can get it for free in the App Store
— greg (@greg16676935420) July 8, 2022