Elon Musk at an event
Source: NotebookCheck

Twitter sues Elon Musk for backing out on the $44 billion deal

Elon Musk has been planning to acquire Twitter for a while. However, when the deal almost went through, many complications surfaced, putting the deal on hold. One of them was the number of bot users that Twitter had. While it didn’t seem that big of a problem, the total bots on Twitter came out to be a lot more than expected. Elon Musk said that it could even be higher than 5% of the total user base. This combined with some other complications, basically killed the deal. So, as Twitter sues Elon Musk, let’s take a look at what they seek.

Twitter sues Elon Musk

Twitter has filed a lawsuit against Elon Musk for backing out on the $44 billion deal to buy Twitter. The social media platform alleged that Elon Musk is not honoring his obligations to the social media platform and its stockholders as it supposedly “no longer serves his personal interests.” Twitter explained this by saying that since they signed the agreement, Tesla’s market cap fell a lot. And Elon has lost more than $100 billion in his wealth.

Twitter sues Elon Musk for backing out on the $44 billion deal
Twitter and Elon Musk

Twitter also says that Elon Musk has always portrayed the social media platform as something of little value. This resulted in downward pressure on their share price and also created business risks. So, the lawsuit asks that Elon Musk is pushed to comply with the closing conditions and also go through with the buyout deal.

Elon’s allegations on Twitter

Elon’s lawyer alleged that Twitter didn’t share the necessary data that was requested from them. And about the ones they did share, they had artificial formatting features and were hard of any use. The lawyer also pointed out that a lot of important employees were let go from Twitter and three major executives also quit. So, all this has created a lot of complications in the deal.

Twitter also didn’t comply with Elon’s request to do a thorough assessment of fake and spam accounts as per his lawyer. All this has pushed Elon to terminate the deal, and since there are so many complications, it is also quite possible that the termination fee will be lowered.

What are your thoughts as Twitter sues Elon Musk for terminating the $44 billion buyout deal? And who do you think is in the right here? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.

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