The Chief Executive Officer (CEO) of Tesla and SpaceX, Elon Musk, has decided to opt out of the deal worth $44 billion to purchase Twitter and SpaceX, claiming that the company did not satisfy him regarding the issue of spam and fake accounts on the microblogging site.
According to a document filed with the Securities and Exchange Commission (SEC) Musk’s lawyers have stated the fact that Twitter didn’t respond to number of requests for specific details on these accounts, which is crucial to improve the effectiveness of the firm.
Twitter refused to comply with Musk’s requests for details on numerous occasions, but it denied them on certain occasions, without stating the reasons the filing said.
The report also states it was found that Twitter not only breached a number of provisions in the Merger Agreement but the company has also made misleading and false statements to convince Musk to purchase Twitter.
Twitter has not released an official statement since Musk announced his decision to stop the deal worth $44 billion. However, the Chairman Bret Taylor, the chairman of Twitter, Bret Taylor, has announced that the company intends to seek legal actions to rebuke Elon Musk.
It is worth noting that a specific clause in the multi-billion dollar deal demands Elon Musk to pay $1 billion to Twitter in the event that he does not adhere to in the Merger Agreement.