Enlarge (credit: Getty Images | SOPA Images )
Update: As suspected, Elon Musk has bailed on his bid to buy Twitter, claiming the company committed multiple breaches of the merger agreement. Musk's attorneys detailed their complaints in a regulatory filing with the SEC. "As further described below, Mr. Musk is terminating the Merger Agreement because Twitter is in material breach of multiple provisions of that Agreement, appears to have made false and misleading representations upon which Mr. Musk relied when entering into the Merger Agreement, and is likely to suffer a Company Material Adverse Effect," reads the filing.
As noted below, Musk could be on the hook for a $1 billion breakup fee or more than that if Twitter beats him in court. In a tweet posted shortly after Musk’s announcement, Twitter Chairman of the Board Bret Taylor said the company would sue to force the deal to close.
The Twitter Board is committed to closing the transaction on the price and terms agreed upon with Mr. Musk and plans to pursue legal action to enforce the merger agreement. We are confident we will prevail in the Delaware Court of Chancery.
— Bret Taylor (@btaylor) July 8, 2022
If there's a way out for the world's richest man, it may be an expensive one.
Read 14 remaining paragraphs | Comments
Ars TechnicaContinue reading/original-link]
