- The twitter $44 billion deal has been terminated by the Musk Party.
- The reason stated is the breach in certain sections as per the merger agreement.
Elon Musk officially sent a notice stating his termination from the Twitter deal to the chief legal officer of Twitter on July 8. This letter highlighted many details including the negligence shown by Twitter for every request put forward by Musk and his advisors.
But the Twitter board seems persistent in confirming the $44 billion deal with the Tesla owner, if not they are also ready to take it to court, as per Bret Taylor, Chairman of Twitter.
Bret Taylor tweet’s:
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
Highlights in Notice
The letter highlights all the disappointments made by Twitter to Musk. Since the start of May, Musk has been putting forward many questions and unresponsiveness depicts the false and misleading information provided in the past.
The major requests were put forward for processing details of audits on fake and scam accounts, and information regarding the mDAU (monetizable daily active usage or users). In specific the last eight quarters’ mDAU details and board materials were used for calculations.
Other than these, statements regarding Twitter’s financial positions like a bottom-up financial model for 2022, and a budget plan for 2022 with update, if any. Some of the details were provided by Twitter but which came with the least usage for Elon and his advisors.
The Musk party is also worried about the credentials of the information provided, they suspect that the information may have been tampered with. These all are conclusive to the compliment raised that is a breach by Twitter under sections 6.4 & 6.11 of the merger agreement.
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