NEW DELHI: In a surprising move, Tesla giant Elon Musk pulled out of the USD 44 Billion Twitter deal. Musk stated that Twitter violated the merger agreement stated by Twitter.
The social media giant was accused of giving out misleading information about the number of fake accounts.
The number of misleading representations of spam bots and failure to stand by the contractual obligations has become the reason for Musk pulling out of the deal.
Another deal breaker was Twitter firing out its higher-ranking executives and firing about one-third of its talent acquisition team. This breaching of obligation to “preserve substantially intact the material components of its current business organisation”, became another reason for Musk to pull out.
As per reports, Elon Musk had already threatened to walk away if the company failed to show that less than 5 per cent of its daily active users are not automated spam accounts.
Twitter in a statement last month stated, “Twitter has and will continue to cooperatively share information with Musk to consummate the transaction in accordance with the terms of the merger agreement.”
The deal included a provision which said that the party breaking the agreement would pay a termination fee of USD 1 million under certain circumstances.
According to an original filing, the merger agreement includes a statement a specific provision, allowing Twitter to force the Tesla giant to consummate the deal.