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He’s not going to cancel the deal without a fight. Twitter Inc. will sue Elon Musk after he formalized the cancellation of the contract of sale of the company 44 billion dollars.
In a post made through his official account twitter, chairman of the company’s board of directors Brett Taylor mentioned that “They are committed to closing the deal at the price and terms agreed with Mr. Musk.” and plans to take legal action to enforce the merger agreement.
“We are confident that we will win in the Delaware Court of Chancery”sentenced Taylor in your tweet.
Least, Musk may be hindered by a break fee of 1 billion dollarsin accordance with the terms of your sales contract 25th of April With Twitter. But the deal gives him limited leeway to walk away and pay that exact amount, and it’s unclear if his complaints about account details are valid. Twitter qualify. The agreement gives the firm the right try to get him to continue acquiring if you wish to cancel for other reasons.
Reasons for cancellation
Elon Musk and his advisers explained in a letter sent to Twitter Inc. that the termination of the merger agreement would be for the same reason that it was rumored to be in danger a few days ago: spam and bot accounts on the platform and the company’s bad response to the mogul to inform him of the status of these bad elements on the social network.
The regulation, released on Friday, states that Elon Musk terminate the purchase agreement Twitter Inc. because the company “is a material breach of several provisions of this agreement” and seems to have done “false and misleading representations” when concluding a contract.
In particular, Musk demanded from Twitter more details about the presence malicious accounts to people who use the platform, mentioning that unless it can be proven that spam accounts and bots are less than 5% users subject to advertising social network, stop the negotiations.
Nonetheless the firm’s executives spoke in detail to the press in Information session informs Reuters past Thursday, June 7 that Twitter detects and deletes more than a million accounts of this type daily, and also ensures that this type of user is well below 5%, which he points out has not changed in his public presentations since 2013.
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Source: RPP
I’m Liza Grey, an experienced news writer and author at the Buna Times. I specialize in writing about economic issues, with a focus on uncovering stories that have a positive impact on society. With over seven years of experience in the news industry, I am highly knowledgeable about current events and the ways in which they affect our daily lives.