Elon Musk is reportedly trying to get out of a contract to sell Twitter. In this context, Twitter is unwilling to give in.
Musk moved to terminate a $44-billion acquisition agreement with Twitter on Friday, alleging that the social media company breached the deal by failing to hand over data he says he needs to evaluate the number of bots and spam accounts on the platform. However, Twitter’s legal representatives hit back in a letter to Musk’s lawyers Sunday, calling his claims “invalid” and demanding that Musk follow through with the takeover. “Mr. Musk’s and the other Musk Parties’ purported termination is invalid and wrongful, and it constitutes a repudiation of their obligations under the Agreement,” reads the letter from William Savit, a lawyer at Wachtell, Rosen, Lipton and Katz—which is representing Twitter in this Twitter purchasing dispute.
In a letter to Twitter on Friday, Musk’s lawyer said the company has not complied with its contractual obligations to provide Musk with sufficient data to evaluate whether there are more bots and spam accounts on the platform than Twitter has publicly acknowledged.
In its Monday reaction, the Twitter group said that, “Twitter has penetrated none of its commitments,” and asserted rather that Musk has “purposely, deliberately, persistently, and substantially penetrated the Agreement.” It added that Twitter has and will proceed to “give data sensibly mentioned” by Musk to close the exchange.
“The Agreement isn’t ended, the Bank Debt Commitment Letter and the Equity Commitment Letter stay as a result, and Twitter requests that Mr. Musk and the other Musk Parties follow their commitments under the Agreement,” the letter states.
Except if Musk withdraws or a settlement is reached, the debate shows up practically 100% to wind up in court. Following Musk’s declaration that he needed to leave the arrangement, Twitter load up seat Bret Taylor said in a tweet Friday that the load up is “focused on shutting the exchange based on the cost and conditions settled upon with Mr. Musk and plans to seek after lawful activity to implement the consolidation understanding.”
“We are certain we will win in the Delaware Court of Chancery,” Taylor added. It doesn’t create the impression that a proper suit has yet been recorded.
In the interim, Twitter (TWTR) stock failed on the insight about the debate, shutting down over 11% on Monday — almost 40% beneath Musk’s arrangement cost, proposing profound suspicion about the arrangement going through. Numerous experts have proposed that Musk might be attempting to involve the bot issue as a guise to escape an arrangement that seems overrated considering the new market slump. Tesla (TSLA) shares, which Musk is wanting to use to some degree to back the arrangement, have additionally fallen lately.