According to a regulatory filing released on July 8, local time, Musk is seeking to terminate the agreement to buy Twitter for $44 billion. Shares of Twitter closed down more than 5% on the day after the document was disclosed. Some analysts pointed out that this is only the beginning of the slump.
The document draws a semicolon for three months of twists and turns, but a legal battle is brewing over the whereabouts of the deal. According to reports, Twitter may sue Musk to force him to fulfill the agreement and complete the acquisition.
The group of lawyers representing Musk said Musk pulled out of the deal because Twitter violated the agreement by not providing the data and information necessary to assess the number of fake accounts. Musk has repeatedly attacked Twitter for this reason.
According to the preliminary agreement between the two parties, the parties to terminate the agreement will need to pay a termination fee of 1 billion US dollars, but Twitter’s board seems to prefer to choose to force Musk to execute the deal at the price and terms originally agreed upon. To that end, they have hired a legal team.
Musk wants to end the $44 billion acquisition of Twitter to hire a legal team to challenge. Click on the video to see what it is!