Musk said on Friday, July 8, that he is no longer interested in buying the micro-messaging service. The SEC filed the news on Friday.
The deal to purchase the social media website for around $44 billion was struck by Musk in April. Musk has not talked about the subject since then. Over the past month, he has barely mentioned the deal, even though his profile used to be filled with big ideas.
That's all right. Musk is backing out of the deal due to misleading statements made during the transaction process.
According to the SEC filing from Musk's legal team, he has been looking for data and information for nearly two months. This information has been failed or refused to be provided by the social networking site. Sometimes it has ignored Mr. Musk's requests and sometimes it has rejected them for reasons that seem to be unjust.
The deal is continuing despite Musk trying to back out. The 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, according to the chairmain. The Delaware Court of Chancery is where we are confident we'll win.
What do you think will happen next? It is anyones guess. While stepping away from the deal may come as a surprise to some, Musk has frequently left hints that he will do so.
The problem is that the deal was already in motion. It is necessary for Musk and his team to prove thatTwitter was misleading during negotiations. Musk could be responsible for a $1 billion breakup fee if he fails to provide evidence.
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