Tesla CEO Elon Musk has threatened to cancel the deal if Twitter does not provide evidence that fake accounts have less than 5% of users who see ads on the platform.
On the other hand, lawyers explained that Twitter failed or refused to respond to multiple requests for information related to fake accounts on the platform.
“Mr. Elon Musk is exercising his right to cancel the agreement and abandon the deal,” Musk’s lawyers said Friday, in a notice to Twitter – a copy of which was sent to the US Securities and Exchange Commission.
And US billionaire Elon Musk announced the cancellation of the $44 billion purchase of Twitter, accusing the social networking platform of failing to provide data on fake accounts on the platform.
And by canceling the purchase agreement he signed last April, Musk opens the door to a legal battle with Twitter over the fees to terminate the deal, which may reach one billion dollars and more.
Musk and Twitter have agreed to a penalty clause of $1 billion to be paid by those who withdraw from the deal.
Some analysts have also speculated that Musk is no longer willing to stick to his original offer in light of Twitter’s decline in the value of Twitter shares since he made his bid.
And Twitter CEO Brett Taylor announced that the company will take legal action to force Musk to complete the purchase of the platform.
Taylor said – in a tweet – that “the Twitter board of directors is committed to completing the deal at the price and terms agreed upon with Musk,” and added, “We are confident that we will prevail.”