Friday saw billionaire Elon Musk sending a letter to Twitter to terminate the $44 billion buyout deal. But Twitter was extremely clear that they were still committed to close the deal on the agreed price and will take Musk to the Delware Court of Chancery to enforce the agreement.
Musk has claimed that Twitter has not provided verifiable information on how many Twitter accounts are spam and accused Twitter of breaching merger agreement because of “materially inaccurate representations.”
If Musk backs out of the deal, he will have to pay $1 billion breakup fee as stated in the agreement. Twitter, however, has reason to hold him to the original deal because its stock has fallen considerably since the company announced that they accepted Musk’s offer to buy the company at $54.20 per share. Twitter shares traded at $36.81 at the end of Friday’s market close.
