Elon Musk, the founder and CEO of Tesla and the richest man in the world, announced on Friday that he was cancelling his $44 billion plan to acquire Twitter because the social media business had broken numerous merger agreement clauses.
Bret Taylor, the chairman of Twitter, said on the microblogging site that the board intended to file a lawsuit to enforce the merger deal.
The Twitter Board is dedicated to completing the transaction under the terms and conditions set forth in the agreement with Mr. Musk, he wrote.
In a brief, Musk’s attorneys claimed Twitter had ignored or refused to reply to several demands for details about phoney or spam accounts on the site, which are crucial to the operation of the company.
According to the complaint, Twitter “appears to have made false and misleading claims upon which Mr. Musk relied when entering into the Merger Agreement” and is in “material breach of multiple sections of that Agreement.”
Musk added that another reason he was leaving Twitter was because the company had broken its promise to “preserve substantially intact the material components of its current business organisation” by firing high-ranking executives and one-third of the talent acquisition team.