Elon Musk to cancel the Twitter purchase deal
Elon Musk, Tesla CEO and world's richest man canceled the Twitter purchase deal on Friday. While closing the deal worth $ 44 billion (Rs 3.37 lakh crore), Musk said,'The company has failed to provide data related to fake Twitter accounts on its platform.'
At the same time, Twitter board chairman Brett Tylow has said 'We will go to court to implement the agreement.' Twitter shares fell 6% after Musk canceled the deal.
Musk may have to pay $ 1 billion, according to the purchase agreement between Twitter and Musk, if the deal is canceled, then under the conditions, Musk will have to pay a break-up fee of $ 1 billion (7.9 thousand crores). But Musk can't escape by simply paying break-up fees.
The agreement includes a provision that could compel Musk to complete the deal. This means that Musk and Twitter may now have a protracted legal battle.
Musk had earlier said that he would withdraw the deal, according to Danik Baskar.
Last month, Musk had threatened to withdraw the deal if it did not prove that less than 5% of the total Twitter users had spam accounts. Musk's lawyer said that information about fake or spam accounts was sought on the Twitter platform, which was not answered or denied. Twitter violated the terms of the agreement and provided false information.