Elon Musk stepping down from purchasing Twitter

After everything that played out on the stage between Elon Musk and Twitter, the ultimate result was nothing like Twitter had expected. At first, there was a lot of push back from the company with it trying to prevent Musk from taking the company over by potentially using a poison pill method. However, then the situation shifted as its board agreed to accept the billionaire’s offer ($44 billion) to buy it for more than it was worth.

The tug of war didn’t end there though, as Musk made multiple attempts to get detailed information about the social media company’s users. Specifically, the amount fake accounts (bots) that afflicted the platform vs actual users. Musk claimed that the company falsified information about its initial user information, which was a breach of contract. Something we ourselves aren’t so surprised about. We just recently published a piece focusing on some of the spam troubles Twitter has been experiencing.

Now, Musk has appears to have fully backed out of the agreement, leading to Twitter looking to strike back. The company is now attempting to sue Elon Musk.

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

The company has already made labor cuts in what it is referring to preparation for the the said merger. ile Meanwhile, Musk is saying that this was never agreed upon and strays from the company’s normal operations.

Now it is in the hands of the courts to figure out if Musk can truly back out of the agreement or not. If his accusations against Twitter are not strong enough to define it as a breach of contract, then he may be held to the agreement. However, if Musk’s accusations are strong enough, he may be able to show that Twitter was in breach of contract, thus allowing him to terminate the deal and walk away.