Musk to cancel purchase of Twitter
After agreeing to purchase Twitter in April, CEO of Tesla, and the world’s richest man, Elon Musk has moved to terminate his purchase of Twitter.
Musk cited the social media company breaching multiple provisions of the merger agreement as the reason for his cancellation of the US$44 billion (A$61.4 billion) deal.
Musk is pulling out of his deal to buy Twitter
Twitter chairman, Bret Taylor insisted that the platform would seek to push ahead with the deal despite the intention from 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
According to Reuters, Musk’s lawyers said Twitter had failed or refused to respond to multiple requests for information on fake or spam accounts on the platform, which is fundamental to the company’s business performance.
“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.”
In May, after almost a year spent acting in the position, Twitter’s Angus Keene was officially promoted into the managing director role for the platform’s operations in Australia and New Zealand.
Last month, Twitter also introduced a host of new features for advertisers and users alike – including Twitter Notes, which lets writers of all kinds go longform directly on Twitter for the first time. At Cannes this year, Twitter announced advertiser tools including conversion optimisation and branded likes.
The team discussed the potential implications of the deal on the Mumbrellacast earlier this year.
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