In a new SEC filing today, Elon Musk and his advisors have decided to pull the proverbial plug on their acquisition of Twitter.
According to the SEC filing, the main reasoning behind their withdrawal from the deal is due to the social media platform breaching multiple provisions that were agreed upon prior, regarding spam and fake accounts on the platform.
Twitter attempted a few months back to wave away any concerns by stating that their data is solid, and refused to meet Elon and his team in the middle and allow him to make his own data compilation.
At the time, Twitter stated that ”privacy concerns” regarding personal information on account holders as a main reason not to let them gain access to the ‘fire hose’ of data of sorts. Now the deal is off, at least before each party’s legal team gets involved.
“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,” Twitter Chairman Bret Taylor said. “We are confident we will prevail in the Delaware Court of Chancery.”
“Mr. Musk is terminating the Merger Agreement because 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 (as that term is defined in the Merger Agreement),” Musk’s team said (via Seeking Alpha).
Whether or not this is the final nail in the coffin for the embattled social media platform’s lucrative acquisition deal with the billionaire entrepeneur is anyone’s guess.
Twitter will have to weigh their options on either complying with what Elon and his team wants for the deal to go through, or suffer the wrath of Twitter investors looking to make profit from the sale. We’ll keep you posted.
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